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Can you summarize MNST 336.2A-218?
UNIFORM COMMERCIAL CODE > INSURANCE AND PROCEEDS.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the insurance and proceeds related to lease contracts. It establishes that a lessee obtains an insurable interest when goods are identified to the lease contract, even if they are nonconforming and the lessee has the option to reject them. The lessor has the right to substitute other goods until default, insolvency, or notification to the lessee that identification is final. The lessor retains an insurable interest until the lessee exercises the option to buy and assumes the risk of loss. The document also states that any insurable interest recognized under other statutes or rules of law is not impaired. Additionally, the parties involved in the lease contract can agree on the obligation to obtain and pay for insurance covering the goods, as well as determine the beneficiary of the insurance proceeds.
Whom does it apply to?
Lessees and lessors in lease contracts
What does it govern?
Insurance and proceeds
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota