2006 New York Code - Effect Of Default On Risk Of Loss.

 
  Section 2-A-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  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.