N.Y. Uniform Commercial Code Law § 2-a-406: Procedure on Excused Performance

Section 2-A-406. Procedure on Excused Performance.

(1) If the lessee receives notification of a material or indefinite

delay or an allocation justified under Section 2-A-405, the lessee may

by written notification to the lessor as to any goods involved, and with

respect to all of the goods if under an installment lease contract the

value of the whole lease contract is substantially impaired (Section

2-A-510):

(a) terminate the lease contract (Section 2-A-505(2)); or

(b) except in a finance lease that is not a consumer lease,

modify the lease contract by accepting the available quota in

substitution, with due allowance from the rent payable for

the balance of the lease term for the deficiency but without

further right against the lessor.

(2) If, after receipt of a notification from the lessor under Section

2-A-405, the lessee fails so to modify the lease agreement within a

reasonable time not exceeding thirty days, the lease contract lapses

with respect to any deliveries affected.