§ 25-2A-219. Risk of loss. - North Carolina Statutes

§25‑2A‑219.  Risk of loss.

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

(2)        Subject to theprovisions of this Article on the effect of default on risk of loss (G.S. 25‑2A‑220),if risk of loss is to pass to the lessee and the time of passage is not stated,the following rules apply:

(a)        if the leasecontract requires or authorizes the goods to be shipped by carrier (i) and itdoes not require delivery at a particular destination, the risk of loss passesto the lessee when the goods are duly delivered to the carrier; but (ii) if itdoes require delivery at a particular destination and the goods are there dulytendered while in the possession of the carrier, the risk of loss passes to thelessee when the goods are there duly so tendered as to enable the lessee totake delivery.

(b)        if the goods areheld by a bailee to be delivered without being moved, the risk of loss passesto the lessee on acknowledgment by the bailee of the lessee's right topossession of the goods.

(c)        in any case notwithin subdivision (a) or (b) of this section, the risk of loss passes to thelessee on the lessee's receipt of the goods if the lessor, or, in the case of afinance lease, the supplier, is a merchant; otherwise the risk passes to thelessee on tender of delivery. (1993, c. 463, s. 1.)