(1) Where the lessee defaults in the payment of rentals in accordance with the finance lease agreement, the lessor may recover accrued unpaid rents together with interest and damages.

(2) Subject to subsection (3), where the lessee defaults in the payment of rentals, or commits another breach, the lessor may terminate the finance lease agreement, and after the termination

(a) recover possession of the asset, subject to subsection (4), and

(b) recover the damages that will place the lessor in the position in which the lessor would have been, had the lessee performed the finance lease agreement in accordance with its terms.

(3) The lessor is not entitled to exercise the right of termination under subsection (2) when the lessor has by notice given the lessee a reasonable opportunity of remedying the default so far as the default may be remedied.

(4) Where the lessor becomes entitled to repossess the asset leased through breach of agreement by the lessee or otherwise through operation of law, and the lessee does not deliver the asset after having been given due notice to surrender the asset to the lessor, the lessor may initiate legal proceedings in a Court against the lessee for the recovery of the asset.

(5) The right of the lessor to repossess does not prejudice other remedies available to the lessor under any other law, including but not limited to the right to recover damages for losses caused by non-compliance with the terms of the finance lease agreement by the lessee.

(6) Where there is repossession under this section, the lessee is, unless otherwise stipulated between the parties, responsible for the immediate payment of the rents due for the remaining term of the finance lease agreement.

(7) The parties may, under a finance lease agreement, stipulate that the amount of future rents at the time of repossession shall be decreased by the fair value of the asset repossessed less the administrative costs of the lessor, including but not limited to legal and transportation costs.

(8) The lessor shall not be entitled to recover damages to the extent that the lessor has failed to take reasonable steps to mitigate its loss.

(9) The procedure laid down in this section for the purpose of repossession by the lessor is applicable equally to a situation contemplated in section 9.