<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2A-219 - Risk of loss. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073309Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073309SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073309CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073309Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 3.00in; text-indent: -2.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073309DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073309Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073309Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073309Normal-000003 { margin-top: 0; margin-bottom: 0; margin-left: 1.58in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073309000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073309SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073309SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073309Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-219"><span class="s2073309SENU">57A-2A-219</span></a><span xml:space="preserve" class="s2073309SENU">. </span><span class="s2073309CL">Risk of loss.</span></p><p dir="ltr" class="s2073309Normal-000000"><span class="s2073309DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073309Normal-000001"><span xml:space="preserve" class="s2073309DefaultParagraphFont">(2)    Subject to the provisions of this chapter on the effect of default on risk of loss in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-220"><span class="s2073309DefaultParagraphFont">57A-2A-220</span></a><span class="s2073309DefaultParagraphFont">, if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply:</span></p><p dir="ltr" class="s2073309Normal-000002"><span class="s2073309DefaultParagraphFont">(a)    If the lease contract requires or authorizes the goods to be shipped by carrier:</span></p><p dir="ltr" class="s2073309Normal-000003"><span class="s2073309DefaultParagraphFont">(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</span></p><p dir="ltr" class="s2073309Normal-000003"><span class="s2073309DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073309Normal-000002"><span class="s2073309DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073309Normal-000002"><span class="s2073309DefaultParagraphFont">(c)    In any case not within subsection (a) or subsection (b) of this section, 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.</span></p><p dir="ltr" class="s2073309Normal"><span xml:space="preserve" class="s2073309000004"> </span></p><p dir="ltr" class="s2073309Normal"><span class="s2073309SCL">Source:</span><span xml:space="preserve" class="s2073309SCL-000005"> SL 1989, ch 419, § 1.</span></p></div></body></html>