§ 4-2.5-220 — Effect of default on risk of loss

Colorado § 4-2.5-220

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(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 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.

(b) If the lessee rightfully revokes acceptance, he or she, to the extent of any
deficiency in his or her effective insurance coverage, may treat the risk of loss as
having remained with the lessor from the beginning.

(2) 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 any deficiency in his or her effective insurance coverage
may treat the risk of loss as resting on the lessee for a commercially reasonable
time.

Legislative History

Source: L. 91: Entire article added, p. 287, � 1, effective July 1, 1992.