J. MILLARD TAWES, Governor                      817

(a)  if it does not require him to deliver them at a particular desti-
nation, the risk of loss passes to the buyer when the goods are duly
delivered to the carrier even though the shipment is under reservation
(Section 2—505); but

(b)  if it does require him to deliver them at a particular destina-
tion and the goods are there duly tendered while in the possession of
the carrier, the risk of loss passes to the buyer when the goods are
there duly so tendered as to enable the buyer to take delivery.

(2)  Where the goods are held by a bailee to be delivered without
being moved, the risk of loss passes to the buyer

(a)  on his receipt of a negotiable document of title covering the
goods; or

(b)  on acknowledgment by the bailee of the buyer's right to pos-
session of the goods; or

(c)  after his receipt of a non-negotiable document of title or other
written direction to deliver, as provided in subsection (4) (b) of
Section 2—503.

(3)  In any case not within subsection (1) or (2), the risk of loss
passes to the buyer on his receipt of the goods if the seller is a mer-
chant; otherwise the risk passes to the buyer on tender of delivery.

(4) The provisions of this section are subject to contrary agree-
ment of the parties and to the provisions of this Sub-title on sale on
approval (Section 2—327) and on effect of breach on risk of loss
(Section 2—510).

2—510. Effect of Breach on Risk of Loss.

(1)   Where a tender or delivery of goods so fails to conform to the
contract as to give a right of rejection the risk of their loss remains
on the seller until cure or acceptance.

(2)   Where the buyer rightfully revokes acceptance he may to the
extent of any deficiency in his effective insurance coverage treat the
risk of loss as having rested on the seller from the beginning.

(3)   Where the buyer as to conforming goods already identified
to the contract for sale repudiates or is otherwise in breach before
risk of their loss has passed to him, the seller may to the extent of
any deficiency in his effective insurance coverage treat the risk of
loss as resting on the buyer for a commercially reasonable time.

2—511. Tender of Payment by Buyer; Payment by Check.

(1)   Unless otherwise agreed tender of payment is a condition to
the seller's duty to tender and complete any delivery.

(2)   Tender of payment is sufficient when made by any means or
in any manner current in the ordinary course of business unless the
seller demands payment in legal tender and gives any extension of
time reasonably necessary to procure it.

(3)  Subject to the provisions of this Article on the effect of an
instrument on an obligation (Section 3—802), payment by check is
conditional and is defeated as between the parties by dishonor of the
check on due presentment.