                                 CODE OF VIRGINIA

RISK OF LOSS (§ 8.2A-219)

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 Title on the effect of default on risk of
loss (§ 8.2A-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&#8217;s right to possession of the goods.

   c. In any case not within subdivision (a) or (b) of this subsection, the risk
   of loss passes to the lessee on the lessee&#8217;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.

HISTORY: 1991, c. 536.