|
| 10.(5) |
| Subsection (2) provides that, even though a transfer is effective, |
| a provision in the lease agreement prohibiting it or making it an |
event of default may be enforceable as provided in subsection (5) |
| (4). See Brummond v. First National Bank of Clovis, 656 P.2d 884, |
| 35 U.C.C.Rep.Serv. (Callaghan) 1311 (N.Mex.1983), stating the |
| analogous rule for Section 9-311 [Maine cite section 9-1311]. If |
| the transfer prohibited by the lease agreement is made an event of |
default, then, under subsection 5(a) |
| waived or there is an agreement otherwise, the aggrieved party has |
| the rights and remedies referred to in Section 2A-501(2), viz. |
| those in this Article and, except as limited in the Article, those |
| provided in the lease agreement. In the unlikely circumstance that |
| the lease agreement prohibits the transfer without making a |
| violation of the prohibition an event of default or, even if there |
| is no prohibition against the transfer, and the transfer is one |
| that materially impairs performance, changes duties, or increases |
| risk (for example, a sublease or assignment to a party using the |
goods improperly or for an illegal purpose), then subsection 5(b) |
| (4)(b) is applicable. In that circumstance, unless the party |
| aggrieved by the transfer has otherwise agreed in the lease |
| contract, such as by assenting to a particular transfer or to |
| transfers in general, or agrees in some other manner, the aggrieved |
| party has the right to recover damages from the transferor and a |
| court may, in appropriate circumstances, grant other relief, such |
| as cancellation of the lease contract or an injunction against the |
| transfer. |
