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Can you summarize MNST 336.2A-220?
UNIFORM COMMERCIAL CODE > EFFECT OF DEFAULT ON RISK OF LOSS.
Short Summary
This provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the risk of loss in lease contracts. If a tender or delivery of goods fails to conform to the lease contract and gives the lessee a right of rejection, the risk of loss remains with the lessor or supplier until cure or acceptance. If the lessee rightfully revokes acceptance, the lessee may treat the risk of loss as having remained with the lessor from the beginning, to the extent of any deficiency in the lessee’s effective insurance coverage. Additionally, if the lessee repudiates or is in default under the lease contract for conforming goods already identified, the lessor or supplier may treat the risk of loss as resting on the lessee for a commercially reasonable time, to the extent of any deficiency in the lessor’s or supplier’s effective insurance coverage.
Whom does it apply to?
Lessors, lessees, and suppliers involved in lease contracts
What does it govern?
Risk of loss in lease contracts
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota