(a) Where risk of loss is to pass to the lessee and the time of passage is not stated
(1) if a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance;
(2) if the lessee rightfully revokes acceptance, the lessee, to the extent of a deficiency in the lessee's effective insurance coverage, may treat the risk of loss as having remained with the lessor from the beginning.
(b) Whether or not risk of loss is to pass to the lessee, if the lessee as to conforming goods already identified to a lease contract repudiates or is otherwise in default under the lease contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of a deficiency in the lessor's or supplier's effective insurance coverage may treat the risk of loss as resting on the lessee for a commercially reasonable time.
Section: Previous 45.12.208 45.12.209 45.12.210 45.12.211 45.12.212 45.12.213 45.12.214 45.12.215 45.12.216 45.12.217 45.12.218 45.12.219 45.12.220 45.12.221 NextLast modified: November 15, 2016