                                 CODE OF VIRGINIA

EFFECT OF DEFAULT ON RISK OF LOSS (§ 8.2A-220)

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.

HISTORY: 1991, c. 536.