<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2A-406 - Procedure on excused performance. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073327Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073327SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073327CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073327Normal-000000 { margin-left: 4.50in; text-indent: -4.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073327DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073327Normal-000001 { margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2073327Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073327000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073327SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073327SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073327Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-406"><span class="s2073327SENU">57A-2A-406</span></a><span xml:space="preserve" class="s2073327SENU">. </span><span class="s2073327CL">Procedure on excused performance.</span></p><p dir="ltr" class="s2073327Normal-000000"><span xml:space="preserve" class="s2073327DefaultParagraphFont">(1)    If the lessee receives notification of a material or indefinite delay or an allocation justified under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-405"><span class="s2073327DefaultParagraphFont">57A-2A-405</span></a><span xml:space="preserve" class="s2073327DefaultParagraphFont">, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired as in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-510"><span class="s2073327DefaultParagraphFont">57A-2A-510</span></a><span class="s2073327DefaultParagraphFont">:</span></p><p dir="ltr" class="s2073327Normal-000001"><span class="s2073327DefaultParagraphFont">(a)    Terminate the lease contract pursuant to § 57A-2A-505(2); or</span></p><p dir="ltr" class="s2073327Normal-000001"><span class="s2073327DefaultParagraphFont">(b)    Except in a finance lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.</span></p><p dir="ltr" class="s2073327Normal-000002"><span xml:space="preserve" class="s2073327DefaultParagraphFont">(2)    If, after receipt of a notification from the lessor under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-405"><span class="s2073327DefaultParagraphFont">57A-2A-405</span></a><span class="s2073327DefaultParagraphFont">, the lessee fails so to modify the lease agreement within a reasonable time not exceeding thirty days, the lease contract lapses with respect to any deliveries affected.</span></p><p dir="ltr" class="s2073327Normal"><span xml:space="preserve" class="s2073327000003"> </span></p><p dir="ltr" class="s2073327Normal"><span class="s2073327SCL">Source:</span><span xml:space="preserve" class="s2073327SCL-000004"> SL 1989, ch 419, § 1; SL 1990, ch 390, § 14.</span></p></div></body></html>