(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.
Structure New York Laws
Part 4 - Performance of Lease Contract: Repudiated, Substituted and Excused
2-A-401 - Insecurity: Adequate Assurance of Performance.
2-A-402 - Anticipatory Repudiation.
2-A-403 - Retraction of Anticipatory Repudiation.
2-A-404 - Substituted Performance.
2-A-405 - Excused Performance.