(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.
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Terms Used In Illinois Compiled Statutes 810 ILCS 5/2A-220

  • Contract: A legal written agreement that becomes binding when signed.
  • Finance lease: means a lease with respect to
    
which:
            (i) the lessor does not select, manufacture, or
        
supply the goods;
            (ii) the lessor acquires the goods or the right
        
to possession and use of the goods in connection with the lease; and
            (iii) one of the following occurs:
                 (A) the lessee receives a copy of the
            
contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;
                (B) the lessee's approval of the contract by
            
which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;
                (C) the lessee, before signing the lease
            
contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or
                (D) if the lease is not a consumer lease, the
            
lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this Article to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Goods: means all things that are movable at the
    •     
    time of identification to the lease contract, or are fixtures (Section 2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lease: means a transfer of the right to
    •     
    possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lease contract: means the total legal obligation
    •     
    that results from the lease agreement as affected by this Article and any other applicable rules of law. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lessee: means a person who acquires the right to
    •     
    possession and use of goods under a lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lessor: means a person who transfers the right
    •     
    to possession and use of goods under a lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Supplier: means a person from whom a lessor buys
    •     
    or leases goods to be leased under a finance lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103
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