---
title: O.C.G.A. § 11-2A-220. Effect of default on risk of loss.
collection: code
id: 11-2A-220
cite_as: O.C.G.A. § 11-2A-220 (2025)
canonical_url: https://georgiacommons.org/code/11-2A-220
md_url: https://georgiacommons.org/code/11-2A-220.md
text_url: https://georgiacommons.org/code/11-2A-220/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=291
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
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current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / LEASES / FORMATION AND CONSTRUCTION OF LEASE CONTRACT
---

# O.C.G.A. § 11-2A-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, to the extent of any deficiency in his 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 effective insurance coverage may treat the risk of loss as resting on the lessee for a commercially reasonable time.

## History

Code 1981, § 11-2A-220, enacted by Ga. L. 1993, p. 633, § 1.