Pennsylvania Code § 13-2A221

Casualty to identified goods.
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If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor or the supplier before delivery, or the goods suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or section 2A219 (relating to risk of loss), then:
(1) if the loss is total, the lease contract is avoided; and
(2) if the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at his option either treat the lease contract as avoided or, except in a finance lease that is not a consumer lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor.
CHAPTER 2A3
EFFECT OF LEASE CONTRACT
Sec.
2A301. Enforceability of lease contract.
2A302. Title to and possession of goods.
2A303. Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights.
2A304. Subsequent lease of goods by lessor.
2A305. Sale or sublease of goods by lessee.
2A306. Priority of certain liens arising by operation of law.
2A307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.
2A308. Special rights of creditors.
2A309. Lessor's and lessee's rights when goods become fixtures.
2A310. Lessor's and lessee's rights when goods become accessions.
2A311. Priority subject to subordination.

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