2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A2 - Formation and Construction of Lease Contract
Section 2A219 - Risk of loss

     § 2A219.  Risk of loss.
        (a)  General rule.--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.
        (b)  Time of passage to lessee.--Subject to the provisions of
     this division on the effect of default on risk of loss (section
     2A220), if risk of loss is to pass to the lessee and the time of
     passage is not stated, the following rules apply:
            (1)  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.
            (2)  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.
            (3)  In any case not within paragraph (1) or (2), 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.

        Cross References.  Section 2A219 is referred to in sections
     2A221, 2A529 of this title.