400.2A-220. Effect of default on risk of loss. - Missouri Statutes

Effect of default on risk of loss.

400.2A-220. (1) Where risk of loss is to pass to thelessee and the time of passage is not stated:

(a) If a tender or delivery of goods so fails to conform tothe lease contract as to give a right of rejection, the risk oftheir loss remains with the lessor, or, in the case of a financelease, the supplier, until cure or acceptance.

(b) If the lessee rightfully revokes acceptance, he, to theextent of any deficiency in his effective insurance coverage, maytreat the risk of loss as having remained with the lessor fromthe beginning.

(2) Whether or not risk of loss is to pass to the lessee,if the lessee as to conforming goods already identified to alease contract repudiates or is otherwise in default under thelease contract, the lessor, or, in the case of a finance lease,the supplier, to the extent of any deficiency in his effectiveinsurance coverage may treat the risk of loss as resting on thelessee for a commercially reasonable time.

(L. 1992 S.B. 448)