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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

002A

:
Leases











 

§

2A-220. Effect of default on risk of loss

(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. (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)