§ 26-1-2.1-219 — Risk of loss

Indiana § 26-1-2.1-219

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) 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.
(2) Subject to the provisions of IC 26-1-2.1 on the effect of default
on risk of loss (IC 26-1-2.1-220), 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 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.
(b) 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.
(c) In any case not within subdivision (a) or (b), 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.

Legislative History

As added by P.L.189-1991, SEC.3.