Ch. 535                                        1994 LAWS OF MARYLAND

(II) IF IT DOES REQUIRE DELIVERY AT A PARTICULAR
DESTINATION AND THE GOODS ARE THERE DULY TENDERED WHILE IN THE
POSSESSION OF THE CARRIER, THE RISK OF LOSS PASSES TO THE LESSEE WHEN THE
GOODS ARE THERE DULY SO TENDERED AS TO ENABLE THE LESSEE TO TAKE
DELIVERY.

(B)     IF THE GOODS ARE HELD BY A BAILEE TO BE DELIVERED WITHOUT
BEING MOVED, THE RISK OF LOSS PASSES TO THE LESSEE ON ACKNOWLEDGMENT
BY THE BAILEE OF THE LESSEE'S RIGHT TO POSSESSION OF THE GOODS.

(C)     IN ANY CASE NOT WITHIN SUBSECTION (A) OR (B), THE RISK OF LOSS
PASSES TO THE LESSEE ON THE LESSEE'S RECEIPT OF THE GOODS IF THE LESSOR,
OR, IN THE CASE OF A FINANCE LEASE, THE SUPPLIER, IS A MERCHANT; OTHERWISE
THE RISK PASSES TO THE LESSEE ON TENDER OF DELIVERY.

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 (OR SHE)
TO THE EXTENT OF ANY DEFICIENCY OF 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.

2A-221. CASUALTY TO IDENTIFIED GOODS

IF A LEASE CONTRACT REQUIRES GOODS IDENTIFIED WHEN THE LEASE
CONTRACT IS MADE, AND THE GOODS SUFFER CASUALTY WITHOUT FAULT OF THE
LESSEE, THE LESSOR OR THE SUPPLIER BEFORE DELIVERY, OR THE GOODS SUFFER
CASUALTY BEFORE RISK OF LOSS PASSES TO THE LESSEE PURSUANT TO THE LEASE
AGREEMENT OR § 2A-219, THEN:

(A)     IF THE LOSS IS TOTAL, THE LEASE CONTRACT IS AVOIDED; AND

(B)      IF THE LOSS IS PARTIAL OR THE GOODS HAVE SO DETERIORATED
AS TO NO LONGER CONFORM TO THE LEASE CONTRACT, THE LESSEE MAY
NEVERTHELESS DEMAND INSPECTION AND AT HIS (OR HER) OPTION EITHER TREAT
THE LEASE CONTRACT AS AVOIDED OR, EXCEPT IN A FINANCE LEASE, ACCEPT THE

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