§ 554.13220 — Effect of default on risk of loss

Iowa § 554.13220

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

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, the lessee, to the extent of any deficiency in
the lessee’s 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 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.