§490:2A-219 Risk of loss. (a) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss passes to the lessee.
(b) Subject to the provisions of this article on the effect of default on risk of loss (section 490:2A-220), if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply:
(1) If the lease contract requires or authorizes the goods to be shipped by carrier:
(i) And it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are duly delivered to the carrier; but
(ii) If it does require delivery at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the lessee when the goods are there duly so tendered as to enable the lessee to take delivery.
(2) If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on acknowledgment by the bailee of the lessee's right to possession of the goods.
(3) In any case not within paragraph (1) or (2), the risk of loss passes to the lessee on the lessee's receipt of the goods if the lessor, or, in the case of a finance lease, the supplier, is a merchant; otherwise the risk passes to the lessee on tender of delivery. [L 1991, c 40, pt of §1]
Case Notes
Where photo processing machine was never delivered to plaintiff, risk of loss did not pass from vendor to plaintiff under this section. 104 H. 148 (App.), 85 P.3d 1099.
Section: Previous 490-2a-212 490-2a-213 490-2a-214 490-2a-215 490-2a-216 490-2a-217 490-2a-218 490-2a-219 490-2a-220 490-2a-221 490-2a-301 490-2a-302 490-2a-303 490-2a-304 490-2a-305 NextLast modified: October 27, 2016