8.2A-220 - A-220. Effect of default on risk of loss. - Virginia Statutes

§ 8.2A-220. Effect of default on risk of loss.

(1) Where risk of loss is to pass to the lessee and the time of passage isnot stated:

(a) If a tender or delivery of goods so fails to conform to the leasecontract as to give a right of rejection, the risk of their loss remains withthe lessor, or, in the case of a finance lease, the supplier, until cure oracceptance.

(b) If the lessee rightfully revokes acceptance, he or she, to the extent ofany deficiency in his or her effective insurance coverage, may treat the riskof 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 toconforming goods already identified to a lease contract repudiates or isotherwise in default under the lease contract, the lessor, or, in the case ofa finance lease, the supplier, to the extent of any deficiency in his or hereffective insurance coverage may treat the risk of loss as resting on thelessee for a commercially reasonable time.

(1991, c. 536.)