N.Y. Uniform Commercial Code Law § 2-a-219: Risk of Loss

Section 2-A-219. Risk of Loss.

(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 this Article on the effect of default

on risk of loss (Section 2-A-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 paragraph (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.