2006 New York Code - Liquidation Of Damages.

 
  Section 2-A-504. Liquidation of Damages.
    (1)  Damages  payable by either party for default, or any other act or
  omission, including indemnity for loss or diminution of anticipated  tax
  benefits  or  loss  or  damage  to  lessor's  residual  interest, may be
  liquidated in the lease agreement but only at an amount or by a  formula
  that  is  reasonable in light of the then anticipated harm caused by the
  default or other act or omission.
    (2) If the lease agreement provides for liquidation  of  damages,  and
  such provision does not comply with subsection (1), or such provision is
  an  exclusive  or limited remedy that circumstances cause to fail of its
  essential purpose, remedy may be had as provided in this Article.
    (3) If the lessor justifiably withholds or  stops  delivery  of  goods
  because  of  the  lessee's  default  or  insolvency  (Section 2-A-525 or
  2-A-526), the lessee is entitled to restitution of any amount  by  which
  the sum of his or her payment exceeds:
         (a) the amount to which the lessor is entitled by virtue of terms
             liquidating   the   lessor's   damages   in  accordance  with
             subsection (1); or
         (b) in the absence of those terms, 20 percent of the then present
             value of the total rent the lessee was obligated to  pay  for
             the  balance of the lease term, or, in the case of a consumer
             lease, the lesser of such amount or $500.
    (4) A lessee's right to restitution under subsection (3) is subject to
  offset to the extent the lessor establishes:
         (a) a right to recover  damages  under  the  provisions  of  this
             Article other than subsection (1); and
         (b) the  amount  or  value of any benefits received by the lessee
             directly or indirectly by reason of the lease contract.