400.2A-219. Risk of loss. - Missouri Statutes

Risk of loss.

400.2A-219. (1) Except in the case of a finance lease,risk of loss is retained by the lessor and does not pass to thelessee. In the case of a finance lease, risk of loss passes tothe lessee.

(2) Subject to the provisions of this Article on the effectof default on risk of loss (Section 400.2A-220), if risk of lossis to pass to the lessee and the time of passage is not stated,the following rules apply:

(a) If the lease contract requires or authorizes the goodsto be shipped by carrier

(i) and it does not require delivery at a particulardestination, the risk of loss passes to the lessee when the goodsare duly delivered to the carrier; but

(ii) if it does require delivery at a particulardestination and the goods are there duly tendered while in thepossession of the carrier, the risk of loss passes to the lesseewhen the goods are there duly so tendered as to enable the lesseeto take delivery.

(b) If the goods are held by a bailee to be deliveredwithout being moved, the risk of loss passes to the lessee onacknowledgment by the bailee of the lessee's right to possessionof the goods.

(c) In any case not within subsection (a) or (b), the riskof loss passes to the lessee on the lessee's receipt of the goodsif the lessor, or, in the case of a finance lease, the supplier,is a merchant; otherwise the risk passes to the lessee on tenderof delivery.

(L. 1992 S.B. 448)