§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.