KRS 355.2A-220: 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, the supplier, until cure or acceptance.

(b) If the lessee rightfully revokes acceptance, he, to the extent of any deficiency

in his effective insurance coverage, may treat the risk of loss as having

remained with the 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 the lease contract, the lessor, or, in the case of a finance lease, the supplier, to

the extent of any deficiency in his effective insurance coverage may treat the risk of

loss as resting on the lessee for a commercially reasonable time.