554.13220 Effect of default on risk of loss. 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, thesupplier, until cure or acceptance. b. If the lessee rightfully revokes acceptance, the lessee, to the extent of any deficiency in the lessee’s effective insurance coverage, may treat the risk of loss as having remained withthe 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 thelease contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of anydeficiency in the lessor’s or supplier’s effective insurance coverage may treat the risk of lossas resting on the lessee for a commercially reasonable time. 94 Acts, ch 1052, §33Referred to in §554.13219 Sat Dec 23 11:03:14 2023 Iowa Code 2024, Section 554.13220 (24, 0)
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