§ 25-2A-220. Effect of default on risk of loss. - North Carolina Statutes

§25‑2A‑220.  Effect of default on risk of loss.

(1)        Where risk of lossis to pass to the lessee and the time of passage is not stated:

(a)        if a tender ordelivery of goods so fails to conform to the lease contract as to give a rightof rejection, the risk of their loss remains with the lessor, or, in the caseof a finance lease, the supplier, until cure or acceptance.

(b)        if the lesseerightfully revokes acceptance, he, to the extent of any deficiency in hiseffective insurance coverage, may treat the risk of loss as having remainedwith the lessor from the beginning.

(2)        Whether or not riskof loss is to pass to the lessee, if the lessee as to conforming goods alreadyidentified to a lease 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 effective insurance coverage may treatthe risk of loss as resting on the lessee for a commercially reasonable time. (1993,c. 463, s. 1.)