2006 New York Code - Lessee\'s Rememdies.

 
  Section 2-A-508. Lessee's Remedies.
    (1)  If a lessor fails to deliver the goods in conformity to the lease
  contract (Section 2-A-509) or repudiates  the  lease  contract  (Section
  2-A-402),  or a lessee rightfully rejects the goods (Section 2-A-509) or
  justifiably revokes acceptance of the goods (Section 2-A-517), then with
  respect 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), the lessor  is  in
  default under the lease contract and the lessee may:
    (a) cancel the lease contract (Section 2-A-505 (1));
    (b) recover  so  much of the rent and security as has been paid and is
  just under the circumstances;
    (c) cover and recover damages as to all goods affected whether or  not
  they  have  been  identified to the lease contract (Sections 2-A-518 and
  2-A-520), or recover  damages  for  nondelivery  (Sections  2-A-519  and
  2-A-520);
    (d) exercise any other rights or pursue any other remedies provided in
  the lease contract.
    (2)  If a lessor fails to deliver the goods in conformity to the lease
  contract or repudiates the lease contract, the lessee may also:
    (a) if the goods have been identified, recover them (Section 2-A-522);
  or
    (b) in a proper case, obtain specific performance or replevy the goods
  (Section 2-A-521).
    (3) If a lessor is otherwise in default under a  lease  contract,  the
  lessee  may  exercise the rights and pursue the remedies provided in the
  lease contract, which may include a right to cancel the  lease,  and  in
  Section 2-A-519(3).
    (4)  If  a lessor has breached a warranty, whether express or implied,
  the lessee may recover damages (Section 2-A-519(4)).
    (5) On rightful rejection or justifiable revocation of  acceptance,  a
  lessee  has  a  security interest in goods in the lessee's possession or
  control for any rent and security interest that has been  paid  and  any
  expenses    reasonably    incurred   in   their   inspection,   receipt,
  transportation, and care and  custody  and  may  hold  those  goods  and
  dispose  of  them in good faith and in a commercially reasonable manner,
  subject to Section 2-A-527(5).
    (6) Subject to  the  provisions  of  Section  2-A-407,  a  lessee,  on
  notifying  the lessor of the lessee's intention to do so, may deduct all
  or any part of the damages resulting from any default  under  the  lease
  contract  from  any  part  of  the  rent  still due under the same lease
  contract.