(810 ILCS 5/2A-220) (from Ch. 26, par. 2A-220)
Sec. 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.
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(b) If the lessee rightfully revokes acceptance, he
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| 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.
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(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.
(Source: P.A. 87-493.)
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