Iowa Code § 554.13221 (2026)
Casualty to identified goods
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 554.13219, 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 the lessee’s option either \n Tue Dec 09 22:02:43 2025 Iowa Code 2026, Chapter 554 (108, 4) §554.13221, UNIFORM COMMERCIAL CODE 256\n\ntreat 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. 94 Acts, ch 1052, §34\n\n PART 3 EFFECT OF LEASE CONTRACT \n