§ 6A-2.1-220 - Effect of default on risk of loss. - Rhode Island Statutes

SECTION 6A-2.1-220

   § 6A-2.1-220  Effect of default on risk ofloss. – (1) Where risk of loss is to pass to the lessee and the time of passage is notstated:

   (a) If a tender or delivery of goods so fails to conform tothe lease contract as to give a right of rejection, the risk of their lossremains 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, maytreat 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, ifthe lessee as to conforming goods already identified to a lease contractrepudiates 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 deficiencyin his or her effective insurance coverage may treat the risk of loss asresting on the lessee for a commercially reasonable time.