§ 2-A-218 — Insurance and Proceeds

New York § 2-A-218

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 2: Formation and Construction of Lease Contract
• Art. 2-A: Leases

Text

Section 2-A-218. Insurance and Proceeds.\n (1) A lessee obtains an insurable interest when existing goods are\nidentified to the lease contract even though the goods identified are\nnonconforming and the lessee has an option to reject them.\n (2) If a lessee has an insurable interest only by reason of the\nlessor's identification of the goods, the lessor, until default or\ninsolvency or notification to the lessee that identification is final,\nmay substitute other goods for those identified.\n (3) Notwithstanding a lessee's insurable interest under subsections\n(1) and (2), the lessor retains an insurable interest until an option to\nbuy has been exercised by the lessee and risk of loss has passed to the\nlessee.\n (4) Nothing in this section impairs any insurable interest recognized\nunder any other statute or rule of law.\n (5) The parties by agreement may determine that one or more parties\nhave an obligation to obtain and pay for insurance covering the goods\nand by agreement may determine the beneficiary of the proceeds of the\ninsurance.\n