-
(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.