§490:2A-220  Effect of default on risk of
loss.  (a)  Where risk of loss is to pass to the lessee and the time of
passage is not stated:



(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)  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 with the lessor from
the beginning.



(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 the lessor's or the supplier's effective insurance coverage, may
treat the risk of loss as resting on the lessee for a commercially reasonable
time. [L 1991, c 40, pt of §1]