Article 2A — Leases · Section 2a-304
This section addresses the requirements and guidelines related to the lease payments under UCC Article 2A, including the time and manner of payment.
Source: U.C.C. § 2a-304
Unless otherwise agreed, a lease requires periodic payments at the times specified in the lease agreement. Each payment is due on the day agreed upon by the parties.
UCC § 2a-304 outlines how lease payments are to be made according to the terms set in the lease agreement. It specifies that payments should be made at times agreed upon by both the lessor and lessee.
The party who leases out the property or goods to another.
The party who receives the right to use and possess the property under the lease.
Example 1
If a lessee has agreed to make monthly payments of $500 on the first of each month, the lessor is entitled to receive this payment on that specific date.
Example 2
A car lease agreement specifies that payments are due on the 15th of each month; thus, any late payment after this date may incur penalties as detailed in the lease.