§ 26-1-2.1-218 — Insurance and proceeds

Indiana § 26-1-2.1-218

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) A lessee obtains an insurable interest
when existing goods are identified to the lease contract even though the
goods identified are nonconforming and the lessee has an option to
reject them.
(2) If a lessee has an insurable interest only by reason of the lessor's
identification of the goods, the lessor, until default or insolvency or
notification to the lessee that identification is final, may substitute other
goods for those identified.
(3) Notwithstanding a lessee's insurable interest under subsections
(1) and (2), the lessor retains an insurable interest until an option to buy
has been exercised by the lessee and risk of loss has passed to the
lessee.
(4) Nothing in this section impairs any insurable interest recognized
under any other statute or rule of law.
(5) The parties by agreement may determine that one or more parties
have an obligation to obtain and pay for insurance covering the goods
and by agreement may determine the beneficiary of the proceeds of the
insurance.

Legislative History

As added by P.L.189-1991, SEC.3.