N.Y. Uniform Commercial Code Law § 2-a-221: Casualty to Identified Goods

Section 2-A-221. Casualty to Identified Goods.

If a lease contract requires goods identified when the lease contract

is made, and the goods suffer casualty without fault of the lessee, the

lessor or the supplier before delivery, or the goods suffer casualty

before risk of loss passes to the lessee pursuant to the lease agreement

or Section 2-A-219, then:

(1) if the loss is total, the lease contract is avoided; and

(2) if the loss is partial or the goods have so deteriorated as to no

longer conform to the lease contract, the lessee may nevertheless demand

inspection and at his or her option either treat the lease contract as

avoided or, except in a finance lease that is not a consumer lease,

accept the goods with due allowance from the rent payable for the

balance of the lease term for the deterioration or the deficiency in

quantity but without further right against the lessor.