70A-2a-219 - Risk of loss. - Utah Statutes

70A-2a-219. Risk of loss.
(1) Except in the case of a finance lease, risk of loss is retained by the lessor and does notpass to the lessee. In the case of a finance lease, risk of loss passes to the lessee.
(2) Subject to the provisions of this chapter on the effect of default on risk of loss asprovided in Section 70A-2a-220, if risk of loss is to pass to the lessee and the time of passage isnot stated, the following rules apply:
(a) 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 thelessee 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 dulytendered while in the possession of the carrier, the risk of loss passes to the lessee when thegoods are there duly so tendered as to enable the lessee to take delivery.
(b) If the goods are held by a bailee to be delivered without being moved, the risk of losspasses to the lessee on acknowledgment by the bailee of the lessee's right to possession of thegoods.
(c) In any case not within Subsection (2)(a) or (b), the risk of loss passes to the lessee onthe lessee's receipt of the goods if the lessor, or, in the case of a finance lease, the supplier, is amerchant; otherwise the risk passes to the lessee on tender of delivery.

Amended by Chapter 324, 2010 General Session