70A-2a-220 - Effect of default on risk of loss.
70A-2a-220. Effect of default on risk of loss.
(1) Where risk of loss is to pass to the lessee and the time of passage is not stated:
(a) If a tender or delivery of goods so fails to conform to the lease contract as to give aright 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.
(b) If the lessee rightfully revokes acceptance, he, to the extent of any deficiency in hiseffective insurance coverage, may treat the risk of loss as having remained with the lessor fromthe beginning.
(2) Whether or not risk of loss is to pass to the lessee, if the lessee as to conforminggoods already identified to a lease contract repudiates or is otherwise in default under the leasecontract, the lessor, or, in the case of a finance lease, the supplier, to the extent of any deficiencyin his effective insurance coverage may treat the risk of loss as resting on the lessee for acommercially reasonable time.
Enacted by Chapter 197, 1990 General Session