2006 New York Code - Repudiated, Substituted And Excused

 
  Section 2-A-405. Excused Performance.
    (1)  Subject  to  Section  2-A-404  on  substituted  performance,  the
  following rules apply:
         (a) delay in delivery or nondelivery in whole or  in  part  by  a
             lessor  or  a  supplier  who  complies with paragraph (b) and
             subsection (2) is not a default under the lease  contract  if
             performance  as  agreed  has  been  made impracticable by the
             occurrence of a contingency the nonoccurrence of which was  a
             basic  assumption  on which the lease contract was made or by
             compliance in good  faith  with  any  applicable  foreign  or
             domestic governmental regulation or order, whether or not the
             regulation or order later proves to be invalid.
         (b) if  the causes mentioned in paragraph (a) affect only part of
             the lessor's or the supplier's capacity to perform, he or she
             shall allocate production and deliveries  among  his  or  her
             customers  but  at  his  or  her  option  may include regular
             customers not then under contract for sale or lease  as  well
             as his or her own requirements for further manufacture. He or
             she   may  so  allocate  in  any  manner  that  is  fair  and
             reasonable.
    (2) The lessor seasonably shall notify the lessee and in the case of a
  finance lease the supplier seasonably shall notify the  lessor  and  the
  lessee,  if  known,  that  there  will  be  delay or nondelivery and, if
  allocation is required under subsection (1) (b), of the estimated  quota
  thus made available for the lessee.