(810 ILCS 5/2A-401) (from Ch. 26, par. 2A-401)
Sec. 2A-401.
Insecurity; adequate assurance of
performance.
(1) A lease contract imposes an obligation on each party
that the other's expectation of receiving due performance will not
be impaired.
(2) If reasonable grounds for insecurity arise with
respect to the performance of either party, the insecure party
may demand in writing adequate assurance of due performance.
Until the insecure party receives that assurance, if commercially
reasonable the insecure party may suspend any performance for
which he or she has not already received the agreed return.
(3) A repudiation of the lease contract occurs if
assurance of due performance adequate under the circumstances
of the particular case is not provided to the insecure party
within a reasonable time, not to exceed 30 days after receipt of
a demand by the other party.
(4) Between merchants, the reasonableness of grounds for
insecurity and the adequacy of any assurance offered must be
determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment
does not prejudice the aggrieved party's right to demand
adequate assurance of future performance.
(Source: P.A. 87-493.)
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