N.Y. Uniform Commercial Code Law § 2-a-510: Installment Lease Contracts: Rejection and Default

Section 2-A-510. Installment Lease Contracts: Rejection and Default.

(1) Under an installment lease contract a lessee may reject any

delivery that is nonconforming if the nonconformity substantially

impairs the value of that delivery and cannot be cured or the

nonconformity is a defect in the required documents; but if the

nonconformity does not fall within subsection (2) and the lessor or the

supplier gives adequate assurance of its cure, the lessee must accept

that delivery.

(2) Whenever nonconformity or default with respect to one or more

deliveries substantially impairs the value of the installment lease

contract as a whole there is a default with respect to the whole. But,

the aggrieved party reinstates the installment lease contract as a whole

if the aggrieved party accepts a nonconforming delivery without

seasonably notifying of cancellation or brings an action with respect

only to past deliveries or demands performance as to future deliveries.