2006 New York Code - Casualty To Identified Goods

 
  Section 2-A-221. Casualty to Identified Goods.
    If  a lease contract requires goods identified when the lease contract
  is made, and the goods suffer casualty without fault of the lessee,  the
  lessor  or  the  supplier  before delivery, or the goods suffer casualty
  before risk of loss passes to the lessee pursuant to the lease agreement
  or Section 2-A-219, then:
    (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.