KRS 355.2-509: Risk of loss in the absence of breach.

(1) Where the contract requires or authorizes the seller to ship the goods by carrier:

(a) If it does not require him to deliver them at a particular destination, the risk of

loss passes to the buyer when the goods are duly delivered to the carrier even

though the shipment is under reservation (KRS 355.2-505); but

(b) If it does require him to deliver them 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 buyer when the goods are there duly so tendered as to enable the

buyer to take delivery.

(2) Where the goods are held by a bailee to be delivered without being moved, the risk

of loss passes to the buyer:

(a) On the buyer's receipt of possession or control of a negotiable doc ument of

title covering the goods; or

(b) On acknowledgement by the bailee of the buyer's right to possession of the

goods; or

(c) After the buyer's receipt of possession or control of a nonnegotiable document

of title or other written direction to deliver, as provided in subsection (4)(b) of

KRS 355.2-503.

(3) In any case not within subsection (1) or (2) of this section, the risk of loss passes to

the buyer on his receipt of the goods if the seller is a merchant; otherwise the risk

passes to the buyer on tender of delivery.

(4) The provisions of this section are subject to contrary agreement of the parties and to

the provisions of this article on sale on approval (KRS 355.2 -327) and on effect of

breach on risk of loss (KRS 355.2-510).