N.Y. UCC Law § 2-A-504

Section 2-A-504. Liquidation of Damages.\n (1) Damages payable by either party for default, or any other act or\nomission, including indemnity for loss or diminution of anticipated tax\nbenefits or loss or damage to lessor's residual interest, may be\nliquidated in the lease agreement but only at an amount or by a formula\nthat is reasonable in light of the then anticipated harm caused by the\ndefault or other act or omission.\n (2) If the lease agreement provides for liquidation of damages, and\nsuch provision does not comply with subsection (1), or such provision is\nan exclusive or limited remedy that circumstances cause to fail of its\nessential purpose, remedy may be had as provided in this Article.\n (3) If the lessor justifiably withholds or stops delivery of goods\nbecause of the lessee's default or insolvency (Section 2-A-525 or\n2-A-526), the lessee is entitled to restitution of any amount by which\nthe sum of his or her payment exceeds:\n (a) the amount to which the lessor is entitled by virtue of terms\n liquidating the lessor's damages in accordance with\n subsection (1); or\n (b) in the absence of those terms, 20 percent of the then present\n value of the total rent the lessee was obligated to pay for\n the balance of the lease term, or, in the case of a consumer\n lease, the lesser of such amount or $500.\n (4) A lessee's right to restitution under subsection (3) is subject to\noffset to the extent the lessor establishes:\n (a) a right to recover damages under the provisions of this\n Article other than subsection (1); and\n (b) the amount or value of any benefits received by the lessee\n directly or indirectly by reason of the lease contract.\n