S.B. 147

VETOES

LIMITATION OF THE WARRANTY, INCLUDING ANY WITH RESPECT TO RIGHTS AND
REMEDIES, EFFECTIVE AGAINST THE LESSEE IS ALSO EFFECTIVE AGAINST ANY
BENEFICIARY DESIGNATED UNDER THIS SECTION. .

2A-217. IDENTIFICATION

IDENTIFICATION OF GOODS AS GOODS TO WHICH A LEASE CONTRACT REFERS
MAY BE MADE AT ANY TIME AND IN ANY MANNER EXPLICITLY AGREED TO BY THE
PARTIES. IN THE ABSENCE OF EXPLICIT AGREEMENT, IDENTIFICATION OCCURS:

(A)     WHEN THE LEASE CONTRACT IS MADE IF THE LEASE CONTRACT IS
FOR A LEASE OF GOODS THAT ARE EXISTING AND IDENTIFIED;

(B)     WHEN THE GOODS ARE SHIPPED, MARKED OR OTHERWISE
DESIGNATED BY THE LESSOR AS GOODS TO WHICH THE LEASE CONTRACT REFERS,
IF THE LEASE CONTRACT IS FOR A LEASE OF GOODS THAT ARE NOT EXISTING AND
IDENTIFIED; OR                                                                                         

(C)     WHEN THE YOUNG ARE CONCEIVED, IF THE LEASE CONTRACT IS
FOR A LEASE OF UNBORN YOUNG OF ANIMALS.

2A-218. INSURANCE AND PROCEEDS

(1)      A LESSEE OBTAINS AN INSURABLE INTEREST WHEN EXISTING GOODS
ARE IDENTIFIED TO THE LEASE CONTRACT EVEN THOUGH THE GOODS IDENTIFIED
ARE NONCONFORMING AND THE LESSEE HAS AN OPTION TO REJECT THEM.

(2)  IF A LESSEE HAS AN INSURABLE INTEREST ONLY BY REASON OF THE
LESSOR'S IDENTIFICATION OF THE GOODS, THE LESSOR, UNTIL DEFAULT OR
INSOLVENCY OR NOTIFICATION TO THE LESSEE THAT IDENTIFICATION IS FINAL,
MAY SUBSTITUTE OTHER GOODS FOR THOSE IDENTIFIED.

(3)      NOTWITHSTANDING A LESSEE'S INSURABLE INTEREST UNDER
SUBSECTIONS (1) AND (2), THE LESSOR RETAINS AN INSURABLE INTEREST UNTIL AN
OPTION TO BUY HAS BEEN EXERCISED BY THE LESSEE AND RISK OF LOSS HAS
PASSED TO THE LESSEE.

(4)      NOTHING IN THIS SECTION IMPAIRS ANY INSURABLE INTEREST
RECOGNIZED UNDER ANY OTHER STATUTE OR RULE OF LAW.

(5)      THE PARTIES BY AGREEMENT MAY DETERMINE THAT ONE OR MORE
PARTIES HAVE AN OBLIGATION TO OBTAIN AND PAY FOR INSURANCE COVERING
THE GOODS AND BY AGREEMENT MAY DETERMINE THE BENEFICIARY OF THE
PROCEEDS OF THE INSURANCE.

2A-219. RISK OF LOSS

(1) EXCEPT IN THE CASE OF A FINANCE LEASE, RISK OF LOSS IS RETAINED BY
THE LESSOR AND DOES NOT PASS TO THE LESSEE. IN THE CASE OF A FINANCE
LEASE, RISK OF LOSS PASSES TO THE LESSEE.

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