361-D:16 Method for Establishing Realized Value. –
I. (a) If a lease is terminated early and the lessee does not exercise any purchase option and the lessee's liability is based on the difference between the lease balance and the realized value, or if the lessee's liability at the scheduled end of the lease term is based upon the vehicle's residual value and the lessee does not exercise any purchase option, the holder shall act in a commercially reasonable manner when disposing of the vehicle or obtaining cash bids for the purpose of establishing the realized value of the vehicle.
(b) Except in the event of a total loss, within 5 business days of lease termination, a lessee who is not in default and whose lease is terminated early without the exercise of a purchase option or whose liability at the scheduled end of the lease term is based upon the residual value of the vehicle may obtain, at the lessee's expense, a professional appraisal of the wholesale value which could be realized at sale of the vehicle, by an appraiser mutually acceptable to the lessee and the holder, who is not the agent or employee of either the lessor, the dealer or the lessee.
(c) The appraisal shall be final and binding upon the parties and shall be used as the realized value in determining the lessee's liability at early termination or at the scheduled end of the lease term.
(d) Nothing in this section shall be deemed to prohibit the lessee and the lessor from agreeing upon the vehicle's realized value, in which case the value agreed upon shall be final and binding upon the parties and shall be used as the realized value in determining the lessee's liability at early termination or at the scheduled end of the lease term.
II. 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 lease, the realized value shall be deemed to be the sum of the amount received by the holder from the lessee's insurance company or from any other party in payment of the loss, and the amount of the lessee's deductible under the lessee's insurance policy received by the holder. In the event that no amount is received, the realized value of the motor vehicle shall be zero.