N.Y. Uniform Commercial Code Law § 2-a-401: Insecurity: Adequate Assurance of Performance

Section 2-A-401. Insecurity: Adequate Assurance of Performance.

(1) A lease contract imposes an obligation on each party that the

other's expectation of receiving due performance will not be impaired.

(2) If reasonable grounds for insecurity arise with respect to the

performance of either party, the insecure party may demand in writing

adequate assurance of due performance. Until the insecure party receives

that assurance, if commercially reasonable the insecure party may

suspend any performance for which he or she has not already received the

agreed return.

(3) A repudiation of the lease contract occurs if assurance of due

performance adequate under the circumstances of the particular case is

not provided to the insecure party within a reasonable time, not to

exceed thirty days after receipt of a demand by the other party.

(4) Between merchants, the reasonableness of grounds for insecurity

and the adequacy of any assurance offered must be determined according

to commercial standards.

(5) Acceptance of any nonconforming delivery or payment does not

prejudice the aggrieved party's right to demand adequate assurance of

future performance.