§ 26-1-2.1-220 — Effect of default on risk of loss

Indiana § 26-1-2.1-220

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: 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, 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 supplier's effective insurance coverage may treat the risk of loss as
resting on the lessee for a commercially reasonable time.

Legislative History

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