New York Laws
Part 2 - Formation and Construction of Lease Contract
2-A-221 - Casualty to Identified Goods.

(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.