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

   1. (1) 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.
   2. (2) 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. (b) 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.

Uniform Commercial Code Comment

“Supplier”. Section 2A-103(1)(x).

“Rights”. Section 1-201(36).

“Reasonable time”. Section 1-204(1) and (2).

“Lessor”. Section 2A-103(1)(p).

“Lessee”. Section 2A-103(1)(n).

“Lease contract”. Section 2A-103(1)(l).

“Goods”. Section 2A-103(1)(h).

“Finance lease”. Section 2A-103(1)(g).

“Delivery”. Section 1-201(14).

Definitional Cross References: “Conforming”. Section 2A-103(1)(d).

Changes: Revised to reflect leasing practices and terminology. The rule in Section (1)(b) does not allow the lessee under a finance lease to treat the risk of loss as having remained with the supplier from the beginning. This is appropriate given the limited circumstances under which the lessee under a finance lease is allowed to revoke acceptance. Section 2A-517 and Section 2A-516 official comment.

Uniform Statutory Source:Section 2-510.

History

July 22, 1992, D.C. Law 9-128, § 2(b), 39 DCR 3830

Prior Codifications

1981 Ed., § 28:2A-220.

Section References

This section is referenced in § 28:2A-219.