N.Y. Uniform Commercial Code Law § 2-a-220: Effect of Default on Risk of Loss

Section 2-A-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 or she, to

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

the risk of loss as resting on the lessee for a commercially reasonable

time.