New York Laws
Part 2 - Formation and Construction of Lease Contract
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.

Structure New York Laws