41-02.1-27. (2A-218) Insurance and proceeds.
164 words·~1 min read·
/nd/title-41/chapter-41-02-1-leases/41-02-1-27·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.