TITLE XXXIII-A
RETAIL INSTALLMENT SALES

CHAPTER 361-D
MOTOR VEHICLE LEASING

Section 361-D:1

    361-D:1 Definitions. –
I. "Adjusted capitalized cost" equals the gross capitalized cost less the capitalized cost reduction, and is the amount used by the lessor in calculating the base periodic payment.
II. [Repealed.]
III. "Capitalized cost reduction" means the total amount of any rebate, cash payment, net trade-in allowance, and noncash credit that reduces the gross capitalized cost.
IV. "Constant yield method" means:
(a) In the case of a periodic payment lease the method of determining the lease charge portion of each base lease payment pursuant to which the lease charge for each computational period is earned in advance by multiplying the constant rate implicit in the lease times the balance subject to lease charge as it declines during the lease term. At any given time during the scheduled term of a periodic payment lease, the balance subject to lease charge shall be the difference between the adjusted capitalized cost and the sum of all depreciation amounts accrued during the preceding computational periods and the first base lease payment.
(b) In the case of a single payment lease, the method of determining the periodic earning of the lease charge portion of the single lease payment pursuant to which the lease charge for each computational period is earned in advance by multiplying the constant rate implicit in the lease times the balance subject to lease charge as it increases during the lease term. At any given time during the term of a single payment lease, the balance subject to lease charge shall be determined by subtracting from the residual value the total lease charge scheduled to be earned over the lease term and adding to the difference all lease charges accrued during the preceding computational periods.
(c) In the case of either a periodic payment lease or a single payment lease, the periodic lease charge calculations shall be based on the assumption that the holder will receive the lease payment or payments on their exact due date or dates and that the lease goes to its full term.
V. "Fair market value" means the wholesale value of the motor vehicle if sold in a commercially reasonable manner in the customary market for such motor vehicle.
VI. "Gap amount" means the difference between the amount owed (or which would be owed in the absence of gap protection) by the lessee under the lease in the event of a total loss of the vehicle prior to the end of the lease term occasioned by its theft, physical damage or other occurrence as specified in the consumer lease, and the actual cash value or portion of the actual cash value of the vehicle, actually received by the lessor from the insurance company or from any other person. The gap amount shall not include any deductible amount applicable to any insurance policy maintained by the lessee or any past due payments owed by the lessee as of the time of the receipt by the lessor of the insurance proceeds, or any other amount due because of the lessee's default.
VI-a. "Gross capitalized cost" means the amount agreed upon by the lessor and the lessee as the value of the leased property and any items that are capitalized or amortized during the lease term, including but not limited to taxes, insurance, service agreements, and any outstanding balance from a prior loan or lease.
VII. "Lease agreement" or "lease" means any written agreement for or in contemplation of the use of a motor vehicle in this state for personal, family, or household purposes, and the purchase of goods, services or benefits incidental thereto, by a person for a term exceeding 4 months, whether or not it is agreed that the lessee bear the risk of the motor vehicle's depreciation or have the option to purchase the motor vehicle. This shall not include a lease to a government, governmental agency or instrumentality, or any agreement that requires a person to purchase a motor vehicle at the end of the agreed upon term.
VIII. "Motor vehicle" means any device propelled or drawn by any power other than muscular power, in, upon, or by which any person or property is or may be transported or drawn upon a highway, excepting heavy trucks as defined in RSA 259:41, road machinery, buses, agricultural machinery, and house and boat trailers.
IX. "Motor vehicle lessor" or "lessor" means a person who holds legal or equitable title to a motor vehicle leased to a lessee under a written lease agreement, or who holds the lessor's rights under such an agreement.
X. "Open end lease" means a lease agreement in which the lessee's liability at the end of the lease term is based, in part on the difference between the residual value of the motor vehicle and its realized value.
XI. "Realized value" means the greater of:
(a) The price received by the lessor for disposition of the vehicle, after subtracting all actual and reasonable expenses of sale.
(b) In the event of the total loss or destruction of the vehicle, the amount described in RSA 361-D:16, II.
(c) The highest bona fide offer received by the holder for disposition of the vehicle.
(d) If the lessee obtains an appraisal of the fair market value as provided in RSA 361-D:17, the realized value shall be the vehicle's fair market value, or if the lessor and the lessee agree upon the realized value, such agreed-upon amount shall be the realized value.
(e) The vehicle's realized value may be determined in the customary wholesale market at the time of disposition of the vehicle.
XII. "Residual value" means the estimated value of the vehicle at the end of the scheduled lease term, used by the lessor in determining the base lease payment, as established by the lessor at the time the lessor and lessee enter into a lease.
XIII. "Solicitation" means any commercial message in any medium or in any location that directly or indirectly promotes a lease transaction, but shall not include direct negotiations between a lessor and lessee or potential lessee.

Source. 1996, 85:1. 1997, 322:21-24, 28, III, eff. June 23, 1997.