N.Y. Uniform Commercial Code Law § 2-a-528: Lessor's Damages for Non-acceptance, Failure to Pay, Repudiation, or Other Default

Section 2-A-528. Lessor's Damages for Non-acceptance, Failure to Pay,

Repudiation, or Other Default.

(1) Except as otherwise provided with respect to damages liquidated in

the lease agreement (Section 2-A-504) or otherwise determined pursuant

to agreement of the parties (Sections 1--302 and 2-A-503), if a lessor

elects to retain the goods or a lessor elects to dispose of the goods

and the disposition is by lease agreement whether or not the lease

agreement qualifies for treatment under Section 2-A-527(2), or is by

sale or otherwise, the lessor may recover from the lessee as damages for

a default of the type described in Section 2-A-523(1) or 2-A-523 (3)(a),

or, if agreed, for other default of the lessee, (a) accrued and unpaid

rent as of the date of default if the lessee has never taken possession

of the goods, or, if the lessee has taken possession of the goods, as of

the date the lessor repossesses the goods or an earlier date on which

the lessee makes a tender of the goods to the lessor, (b) the present

value as of the date determined under clause (a) of the total rent for

the then remaining lease term of the original lease agreement minus the

present value as of the same date of the market rent at the place where

the goods are located computed for the same lease term, and (c) any

incidental damages allowed under Section 2-A-530, less expenses saved in

consequence of the lessee's default.

(2) If the measure of damages provided in subsection (1) is inadequate

to put a lessor in as good a position as performance would have, the

measure of damages is the present value of the profit, including

reasonable overhead, the lessor would have made from full performance by

the lessee, together with any incidental damages allowed under Section

2-A-530, due allowance for costs reasonably incurred and due credit for

payments or proceeds of disposition.