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 [Repealed.]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.
Section 361-D:2
361-D:2 Information to be Included With Solicitation. –
I. Any solicitation to enter into a lease agreement which contains references to the amount of any payment, the number of payments, a statement of any required downpayment or that no payment is required, shall also include a clear and conspicuous statement of all of the following:
(a) A statement that the transaction advertised is a lease.
(b) If the lease is an open end lease, the value placed on the motor vehicle at the inception of the lease and the maximum for which the lessee could be held liable at the end of the lease period, or the method for calculating the lessee's liability.
(c) The amount, if any, required by the lessor as a security deposit, advance periodic payment, or other prepayment.
(d) The term of the lease expressed in months, the amounts and due dates or periods of scheduled payments, and the total amount of periodic payments.
(e) A statement of whether or not the lessee has the option to purchase the leased motor vehicle and at what price and time. The method of determining the price may be substituted for disclosure of the price.
II. No solicitation may state that a specific lease of any motor vehicle at specific amounts or terms is available unless the lessor usually and customarily leases or will lease that motor vehicle at those amounts or terms.
III. Failure to comply with the provisions of this section shall not affect the validity of the leasing agreement. There shall be no liability on the part of any owner or personnel of any advertising medium for any violation of this section.
IV. A lessor shall be deemed to have complied with the requirements of this section if the solicitation includes a clear and conspicuous disclosure of a toll-free telephone number that consumers may use to obtain a free copy of the information required to be disclosed by this section.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:3
361-D:3 Lease Agreement; Form and Contents. –
I. Every lease agreement shall be in writing and, if printed, shall:
(a) Be in type no smaller than 8-point.
(b) Be clearly marked, at the top of the lease agreement in at least 10-point, bold capitalized type, the words "Motor Vehicle Lease Agreement".
II. (a) The agreement shall be signed by the lessor or authorized representative and by the lessee or authorized representative.
(b) An exact copy shall be furnished the lessee by the lessor at the time the lessor and the lessee have signed the agreement.
(c) No motor vehicle shall be delivered under this chapter until the lessor delivers to the lessee a fully executed copy of the agreement.
(d) The lessor shall not obtain the signature of the lessee to an agreement when it contains blank spaces to be filled in after it has been signed.
III. Every lease shall conform to the requirements of 15 U.S.C. section 1604 as amended and 12 C.F.R., part 13 as amended and shall contain, although not necessarily in the sequence or order set forth below, the following separate items:
(a) A brief description of the motor vehicle, including the identification or license number, if known, or both the identification and license number, if both are known.
(b) If the lease is an open end lease, the value placed on the motor vehicle at the inception of the lease.
(c) The amount of any payment made by the lessee at the inception of the lease, other than a security deposit or advance periodic payment, and the amount of any trade-in allowance, and brief description of any property accepted by the lessor in lieu of cash.
(d) The amount of any advance periodic payment or payments required at the inception of the lease.
(e) The number, amount, and the due dates or period of payments under the lease agreement, and the total amount of such periodic payments.
(f) The residual value of the motor vehicle.
(g) The amount or the method of determining the amount of any liability to be imposed on the lessee at the expiration of the lease term.
(h) The amount of any security deposit received by the lessor as security for the performance of the lessee's obligations under the lease agreement.
(i) The estimated amount paid or payable by the lessee during the lease term for official fees, registration, certificate of title, license fees or taxes.
(j) A brief description of insurance provided or paid for by the lessor, including the type and amount of coverage and costs, or, if not provided or paid for by the lessor, the type and amount of coverage required of the lessee.
(k) The description of, amount of, or method of determining other charges payable by the lessee not included in the periodic payments or a single payment in the case of a single payment lease.
(l) A statement identifying all express warranties and guarantees made by the manufacturer or lessor with respect to the leased motor vehicle, except when the standard manufacturer's warranty applies, then the warranty may be identified by a reference to the standard manufacturer's warranty, and identifying the party responsible for maintaining or servicing the leased property together with a description of the responsibility.
(m) Any mileage limitation which will be utilized in determining, a charge for excessive use or the residual value of the motor vehicle, or both.
(n) A statement whether or not the lease agreement contains an express option to purchase the vehicle at the end of or during the lease term and at what price or the method of determining the price.
(o) A statement of the conditions under which the lessee or lessor may terminate the lease prior to the end of the term and the amount or method of determining any penalty or other charge for delinquency, default, or early termination.
(p) If the lease is an open end lease, a statement that the lessee shall be liable for the difference between the residual value of the motor vehicle and its realized value at the end of the term.
(q) The gross capitalized cost, identified as "gross capitalized cost", with a descriptive explanation such as "the agreed upon value of the vehicle (state the amount) and any items you pay for over the lease term (such as service contracts, insurance, and any outstanding prior loan or lease balance)," and a statement informing lessees that they may request an itemization of the components of the gross capitalized cost, with the amount of each such component separately itemized, from the lessor or lessor's agent prior to executing the lease.
(r) Any capitalized cost reduction, using the term "capitalized cost reduction".
(s) The adjusted capitalized cost, using the term "adjusted capitalized cost" and a descriptive explanation, used in calculating the base (periodic) payment.
IV. Notwithstanding any other provision of this chapter to the contrary, any information required to be disclosed in a lease agreement under this chapter may be set forth in the manner required or permitted under federal law or regulation, as in effect at the time such disclosure is made. Nothing contained in this chapter shall be deemed to prohibit the disclosure in such agreement of additional information required or permitted under federal law, as in effect at the time such disclosure is made.
V. Any portion of the information required to be disclosed under this section may be given in the form of a reasonable estimate where the lessor is not in a position to know exact information.
Source. 1996, 85:1. 1997, 322:25, 26, eff. June 23, 1997.
Section 361-D:4
361-D:4 Lease Agreement; Warnings. –
Every lease agreement shall contain, in at least 8-point bold type, above the acknowledgment authorized under RSA 361-D:7 or if none exists the space provided for the lessee's signature and circumscribed by a line, the following warnings which shall be signed or initialed by the lessee:
I. Notice to the lessee:
(a) Do not sign this agreement before you read it or if it contains any blank spaces to be filled in;
(b) You are entitled to a completely filled in copy of this agreement;
(c) If you default in the performance of your obligations under this agreement, the vehicle may be repossessed and you may be subject to suit and liability for an early termination obligation under this agreement.
s/s __________ lessee
II. Warning-Unless a charge is included in this agreement for public liability or property damage insurance, payment for such coverage is not provided by this agreement.
s/s __________ lessee
III. You have the right to return the vehicle, and receive a refund of any payments made if the credit application is not approved, unless nonapproval results from an incomplete application or from incorrect information provided by you.
s/s __________ lessee
IV. New Hampshire law does not provide for a "cooling-off" or other cancellation period for vehicle leases. Therefore, you cannot later cancel this lease simply because you change your mind, decide the base payment or capitalized costs are too much, or wish you had acquired a different vehicle. You may only cancel this lease with the agreement of the lessor or for legal cause, such as fraud.
s/s __________ lessee
V. Any holder of this lease is subject to all claims and defenses which:
(a) You could assert against the lessor of the vehicle that you have leased and
(b) Are clear on the face of the lease.
s/s __________ lessee
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:5
361-D:5 Lease Agreement; Prohibited Provisions. –
No lease agreement shall contain any provision by which:
I. A power of attorney is given to confess judgment in this state, or an assignment of wages is given; provided that nothing contained in this paragraph shall prohibit the giving of an assignment of wages contained in a separate instrument.
II. The lessee waives any right of action against the lessor or holder of the lease agreement or other person acting on lessee's behalf for any illegal act committed in the collection of payments under the agreement or in the repossession of the motor vehicle.
III. The lessee relieves the lessor from liability for any legal remedies which the lessee may have against the lessor under the agreement or any separate instruments executed in connection with the agreement.
IV. The lessor or holder of the agreement is given the right to commence action on an agreement under the provisions of this chapter in a county other than the county in which the agreement was signed by the lessee, the county in which the lessee resides at the commencement of the action, the county in which the lessee resided at the time the agreement was entered into or in the county in which the motor vehicle leased pursuant to such agreement is permanently garaged.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:6
361-D:6 Sample Lease Form. –
The lessor shall make a blank sample of its current lease form readily available for examination by prospective lessees by furnishing it upon request before the consummation of a lease and shall provide a copy of a sample lease to every prospective lessee upon the signing by the prospective lessee of any motor vehicle order form or other agreement to lease an identified motor vehicle.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:7
361-D:7 Acknowledgment by Lessee. –
I. Any acknowledgment by the lessee of delivery of a copy of a lease agreement or purchase order and any vehicle lease proposal and any credit statement which the lessor has required or requested the lessee to sign, and which the lessee has signed, during the agreement negotiations, shall be printed or written in size equal to at least 10-point bold type and, if contained in the agreement, shall appear directly above the space reserved for the lessee's signature.
II. The lessee's written acknowledgment, conforming to the requirements of this section, of delivery of a completely filled in copy of the agreement, and a copy of such other documents shall be a rebuttable presumption of delivery in any action or proceeding by or against a holder without knowledge to the contrary when the holder acquired interest in the agreement.
III. If such holder furnishes the lessee a copy of such documents, or a notice containing items listed in RSA 361-D:3, III(a)-(l) stating that the lessee shall notify such holder in writing within 30 days if the lessee was not furnished a copy of such documents, and no such notification is given, it shall be conclusively presumed in favor of such a holder that copies of such documents were furnished as required by this chapter.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:8
361-D:8 Payment or Trade-in. –
I. If a lessee has made a payment to a lessor pending the execution of a lease, has surrendered possession of a trade-in vehicle, or both, the lessee shall have the right, if the lease is not executed by the lessee and lessor, to have any trade-in vehicle returned and receive a refund of any payments made within 10 days after the lessor receives notice that the application has not been approved. If a lessee leaves a trade-in vehicle with the lessor and the lessor and lessee agree that the parties shall enter into a lease, the lessor shall not sell or transfer the trade-in vehicle until the lessee and the lessor execute a lease.
II. This section shall not apply to the sale of a vehicle by a prospective lessee to a prospective lessor under a separate contract of sale if such contract is executed before the parties have consummated a lease, is dated as of the sale date and is signed by the parties. Such contract shall provide and shall clearly and conspicuously disclose, in at least 8-point bold face type: that the contract price establishes the vehicle's value for purposes of determining the amount the lessor will credit as a "capitalized cost reduction" or as payment of the total amount due at lease signing under any lease subsequently consummated by the parties or as the amount due to the lessee for the vehicle in the event the parties fail to consummate a lease within 30 days; that the prospective lessee agrees to leave the contract price on deposit with the prospective lessor pending the consummation of a lease for a vehicle to be ordered from the manufacturer or for a vehicle not yet in production as of the date of the contract; and that 15 days after the lessor and prospective lessee shall agree that no lease will be consummated, and, in any event, no later than 45 days after the sale date, the prospective lessee shall be entitled to payment of the agreed upon price for the vehicle unless within that time the parties have consummated a lease or have agreed to an earlier payment of the price to the prospective lessee.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:9
361-D:9 Total Loss Notice and Waiver of Gap Amount. –
I. If the lease provides that the lessee shall be responsible for the gap amount, the lease shall disclose that fact and disclose the obligations for which the lessee would remain liable 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 occurrences as specified in the lease, using the term "gap amount".
II. The lessor may waive its contractual right to hold the lessee liable for some or all of the gap amount. This waiver may be granted either without a separate charge to the lessee, or in exchange for the payment by the lessee of a separate charge. Any separate charge for such waiver must be conspicuously disclosed to the lessee.
III. If the lessor, as provided in paragraph II of this section, offers for a separately stated charge to waive its contractual right to hold the lessee liable for the gap amount, the lease shall also contain a conspicuous notice which shall state in at least 8-point bold face type that:
(a) For a separate charge disclosed in the notice the lessor shall waive its contractual right to hold the lessee liable for the gap amount.
(b) The lessee may as an alternative to purchasing a waiver, be able to purchase protection covering the gap amount from a company which has been authorized to do business in this state.
(c) Failure to provide the notice as required by this section shall invalidate any lease provision which otherwise would obligate a lessee to pay to the holder, after a total loss of the vehicle occasioned by its theft, physical damage or other occurrence as specified in the lease.
(d) No lease shall be conditioned upon the lessee's obtaining of vehicle lessee gap protection.
IV. The lessor's waiver of its contractual right to hold the lessee liable for the gap amount may be conditioned upon the receipt by the lessor of:
(a) All amounts due under the lease as of the date of receipt by the lessor of the insurance proceeds or equivalent amount of the value of the vehicle, or if no such date is specified, as of the date of total loss of the vehicle.
(b) An amount from the lessee equal to the amount of the lessee's deductible and any other subtractions from the actual cash value under the lessee's insurance policy.
(c) Insurance proceeds from the insurance policy required under the lease, or the equivalent amount of the value of the vehicle established by reference to an official used car guide publication as of the date of the loss.
V. The lessor's waiver of its right to hold the lessee liable for the gap amount shall not be deemed to be insurance under the laws of this state and no license shall be required of lessors who waive or offer to waive such right.
VI. [Repealed.]
Source. 1996, 85:1. 1997, 322:28, IV, eff. June 23, 1997.
Section 361-D:10
361-D:10 Refund of Excess Fees. –
If a lessee of a vehicle pays to the lessor an amount for fees owed to the state, the licensing or transfer of title of the vehicle which amount is in excess of the actual fees due for such licensing or transfer, including any excess of the amount which has been paid, prior to the execution of the lease, by the lessor to the state in order to avoid penalties that would have accrued because of late payment of such fees, the lessor shall return such excess amount to the lessee, whether or not such lessee requests the return of the excess amount.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:11
361-D:11 Lien on Other Property. –
No agreement in connection with a lease agreement which provides for the inclusion of title to or a lien upon any personal or real property, other than the motor vehicle which is the subject matter of the lease agreement, or accessories for such vehicle or special and auxiliary equipment used in connection with such vehicle as security for the payment of the agreement obligations, shall be enforceable. This section shall not apply to a security deposit, advance payment of rent, or other cash prepayment. This section shall not apply to contracts which are ancillary to the lease and directly applicable to the leased vehicle, such as extended warranty or service agreements or contracts of insurance.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:12
361-D:12 Rights of Assignee of Lessor. –
I. An assignee of the lessor's rights shall be subject to all equities and defenses of the lessee against the lessor that are clear on the face of the lease, notwithstanding an agreement to the contrary, but the assignee's liability may not exceed the amount of the obligation owing to the assignee at the time of the assignment.
II. The assignee shall have no liability for errors or omissions made by the lessor or lessor's agent when providing itemization of the components of capitalized cost pursuant to RSA 361-D:3, III(q).
III. The assignee shall have recourse against the lessor to the extent of any liability incurred by the assignee pursuant to this section regardless of whether the assignment was with or without recourse.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:13
361-D:13 Unlawful Rebates, Discounts, and Commissions. –
It shall be unlawful for any lessor to induce or attempt to induce any person to enter into an agreement subject to this chapter by offering a rebate, discount, commission, or other consideration, on the condition that the lessee or prospective lessee gives information or assistance for the purpose of enabling a lessor to either lease or sell a motor vehicle to another.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:14
361-D:14 Notice of Lessee's Default and Right to Cure. –
I. After a lessee has been in default for 10 days solely by reason of the lessee's failure to make a timely lease payment and any applicable late charges, the holder may declare the lessee to be in default and may send the lessee a notice of default.
II. A lessee who has been in default solely by reason of the lessee's failure to make a timely lease payment and any applicable late charges and who has not previously been afforded the right to cure a default shall be entitled to cure the default.
III. If the lessee is entitled to cure the default the notice shall contain a conspicuous statement that the lessee is entitled to cure the default, setting forth the dollar amount necessary to cure the default, the date by which payment must be made and the name, address and telephone number of the holder from which information may be obtained regarding such cure.
IV. This section shall not apply to any default other than the lessee's failure to make a timely lease payment and any applicable late charges.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:15
361-D:15 Open End Leases; Lessee to Bear Risk of Vehicle's Depreciation. –
I. For open end leases, the residual value shall be a reasonable approximation of the anticipated fair market value of the motor vehicle at the end of the scheduled term.
II. There shall be a rebuttable presumption that the residual value is unreasonable to the extent that the residual value exceeds the realized value at lease end by more than 3 times the average payment allocable to a monthly period under the lease. This presumption shall not apply when the excess residual value over realized value is due to physical damage to the motor vehicle beyond reasonable wear and use, or to excessive use, and the lease may set standards for such wear and use if such standards are not unreasonable.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:16
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.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:17
361-D:17 Restriction on Liability for Early Termination. –
I. The lessee shall have the right to terminate the lease at any time after the lessee has made 12 full periodic lease payments for which lease charges have been accrued by the holder, or, in the case of a single payment lease, at the expiration of 12 months from the consummation of the lease. Nothing in this section shall be deemed to prohibit the holder from permitting the lessee to terminate the lease before the expiration of 12 months.
II. If a lease is terminated early and there is not a purchase option or the lessee does not exercise any purchase option, the lessee's early termination obligation may not exceed an amount equal to the sum of:
(a) Any unpaid lease payments that accrued through the date of early termination.
(b) Any other unpaid amounts, other than excess mileage charges, arising under the terms of the lease.
(c) Any official fees and taxes imposed in connection with lease termination.
(d) A disposition fee in an amount set forth in the consumer lease.
(e) The reasonable costs of retaking, storing, preparing for sale and selling the vehicle, including reasonable attorneys' fees and collection and court costs incurred by the lessor in recovering or securing possession of the vehicle.
(f) The amount, if any, at the time which early termination occurs, by which the balance subject to lease charge plus the lease charge earned in advance for the computational period as defined in the lease, calculated in accordance with the constant yield method or any other generally accepted lease accounting method exceeds the realized value of the vehicle.
(g) Any other early termination charge expressly disclosed in the consumer lease.
III. As an alternative to the constant yield and other generally accepted lease accounting methods of determining the depreciation amounts accrued through the date of early termination of a precomputed lease transaction, those amounts may be determined under subparagraph II(f) by using a lease provision under which the lease charge is calculated on the adjusted capitalized cost for the time outstanding according to a generally accepted actuarial method.
IV. This section shall not limit or restrict the manner of calculating the lessee's early termination obligation, whether by way of unamortized capitalized cost, discounted present value of remaining lease payments, multiples of monthly payments or otherwise, provided that the amount or method of calculating the lessee's early termination obligation shall always be conspicuously disclosed in the lease.
V. Any refundable security deposit or advance lease payment held by the holder may be retained by the holder and shall be credited against the lessee's early termination obligation to the extent it has not been applied against other obligations. The amount of such security deposit or advance lease payment in excess of the amount of the lessee's early termination obligation shall be returned to the lessee. The holder is not obligated to pay interest to the lessee on the security deposit.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:18
361-D:18 Restriction on the Reporting of Early Terminations. –
The holder of a lease shall not report the voluntary early termination of a lease to a consumer reporting agency as a default unless the lessee fails to satisfy the lessee's early termination obligations under the lease.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:19
361-D:19 Assessment of Excess Wear and Damage to the Vehicle. –
I. The lease shall contain a clause complying with the Consumer Leasing Act, 15 U.S.C. section 1677 et seq., which describes the standards for determining excess wear and damage to the vehicle for which the lessee will be liable. Upon the lessee's exercise of a purchase option, the holder may not charge, receive or collect a charge for excess wear and damage to the vehicle. The holder may not prohibit the lessee from being present at an inspection for excess wear and damage.
II. No later than 45 days after the return of the vehicle, the holder shall present an itemized bill to the lessee by hand delivery at any location or by first class mail or recognized courier service to the address on the holder's records. The itemized bill shall consist of a listing of the items of excess wear and damage and the amounts to be paid by the lease. An itemized bill may be comprised of separate documents delivered or mailed separately. An itemized bill may also include identified charges for excess mileage and other amounts due under the lease. Mere acknowledgment by the lessee or receipt of an itemized bill shall not operate as an admission of the existence, nature, obligation to pay, or amount of any of the items therein. The holder shall not be required to prepare an itemized bill in response to wear and damage charges identified in lessee's counter inspection report.
III. Except as provided in this chapter, for inspections at or after the return of the vehicle, the holder shall:
(a) Provide to the lessee an itemized bill.
(b) Provide to the lessee the following statement: "You are being asked to pay this amount for excess wear and damage. If you do not agree with this amount and to preserve valuable rights, you must notify us within 7 days of receipt of this bill of your disagreement and obtain and deliver to us, within 30 days after hand delivery or mailing of this bill, an itemized inspection report and estimate of the cost of repairing such excess wear and damage from an appraiser agreed to by us and, payment of any charges due under the inspection you obtained. If you properly obtain and deliver such appraisal and tender any amounts due, such appraisal shall be binding on the holder. If you fail to do so, the holder's inspection shall be conclusive."
(c) In order for the lessee to obtain a counter-inspection, the holder shall allow the lessee access to the vehicle at a reasonable time and place designated by the holder during the 30 day time period as provided in subparagraph (b). The holder shall not be required, however, to deliver the vehicle to, or produce the vehicle at, a destination designated by the lessee for such purpose.
IV. If the lessee is required, or is given the option, to have the vehicle inspected by the holder prior to scheduled termination, the holder shall provide to the lessee notice of such inspection at least 15 days prior to the last date available for such inspection, which shall not be earlier than 15 days prior to scheduled termination, and notice that unless the lessee obtains a counter-inspector, the holder's inspection at lease end shall be conclusive. The pre-termination inspection shall be reasonable as to time and place. In addition to the statement required in paragraph III(b), an itemized bill shall include the following statement: "If this inspection report was prepared by the holder prior to the scheduled termination, you may avoid excess wear and damage charges by having such items satisfactorily repaired prior to the return of the vehicle. The holder may inspect the vehicle at or after its return and may seek additional charges only by written notice and only for wear and damage incurred after the date of the holder's vehicle inspection. In addition, any charges for wear and damage under this inspection or your own inspection shall be due when your lease terminates."
V. (a) A lessee counter-inspection as provided in this section or, if no such counter-inspection is obtained, a pre-termination itemized bill prepared by the holder as required by this section shall be conclusive upon the holder and not subject to increase at the termination of the lease, except to the extent that such wear and damage was obscured or concealed or is reasonably believed by the holder to have occurred after the initial pre-termination inspection.
(b) With respect to such additional wear and damage charges, the holder may give the lessee another itemized bill described in paragraphs II and III.
VI. If the lessee does not present the vehicle for an authorized or required pre-termination inspection, the holder shall give the lessee the itemized bill as described in paragraph II of this section.
VII. (a) The lessee may obtain at the lessee's expense within the periods provided, a counter-inspection.
(b) To be considered a "counter-inspection", the inspection shall:
(1) Be conducted by an inspector reasonably agreed to by the holder.
(2) Be in writing in a form provided by or acceptable to the holder listing the items of excess wear and damage, if any, and the associated estimated cost of repairs according to standards set forth in the lease.
(3) Be delivered to the holder within the applicable time frame.
(4) If conducted after the vehicle is returned to the lessor, be accompanied by payment of the amount of such excess wear and damage listed on the counter-inspection.
VIII. Absent mathematical or other manifest error, the holder shall accept such counter-inspection as determinative of the lessee's excess wear and damage obligations under the lease with respect to the itemized bill for which the counter-inspection is presented and payment is made.
IX. If the lessee does not obtain a counter-inspection or a pre-termination inspection, then with respect to such inspection the lessee shall not be in default, notwithstanding any provision in the lessee's lease agreement to the contrary. If the lessee does not obtain a counter-inspection or, if offered, a pre-termination inspection, the itemized bill described in paragraph II of this section shall be conclusive.
X. The holder shall substantially comply with the provisions of this section. If the holder wishes to charge, receive or collect a charge for excess wear and damage, the exclusive penalty for failure to substantially comply with the provisions of this section shall be a waiver of the right to collect all contested excess wear and damage charges from the lessee. The holder shall not be required to send any notice if the holder does not wish to collect an excess wear and damage charge. Nothing in this chapter shall limit the lessee's obligation for any charge for excess mileage or prohibit any agreement between the lessee and the holder relating to wear and damage if such agreement is consistent with the rights given to the lessee. Nothing shall limit the lessee's liability to holder for odometer rollbacks or obscured or concealed structural or safety related damage discovered by the holder after the return of the vehicle or after the lessee receives an itemized bill.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:20
361-D:20 Satisfaction of Lease. –
After the payment of all sums for which the lessee is obligated under a lease, and upon the lessee's written request, the holder shall mail to the lessee at the lessee's last known address a document stating that the lessee has made payment in full. This document shall not operate to release the lessee from liability for events discovered by the holder subsequent to the mailing of such document.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:21
361-D:21 Renegotiations and Extensions. –
I. All disclosure requirements set forth in this chapter shall apply to the renegotiation of a lease. A renegotiation does not constitute a transaction subject to warranty or other provisions that apply to the sale of used vehicles under the laws of this state.
II. The disclosure requirements shall not apply to any extension of a lease 6 months or less.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:22
361-D:22 Liability of Lessor. –
I. Except as otherwise provided by this section, any lessor who fails to comply with any requirement imposed under the provisions of this chapter or for which no specific relief is provided with respect to any person shall be liable to such person in an amount equal to the sum of:
(a) Any actual damages sustained by such person as a result of the failure.
(b) In the case of an individual action, 25 percent of the total amount of monthly payments under the lease except that liability under this subparagraph shall not be less than $100 or greater than $1,000; or in the case of a class action, such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery in such action shall not be more than the lesser of $500,000 or one percent of the net worth of the lessor.
(c) The costs of the action, together with reasonable attorney fees as determined by the court.
II. In determining the amount of award in any class action, the court shall consider, among other relevant factors:
(a) The amount of any actual damages sustained.
(b) The frequency and persistence of failure of compliance by the lessor.
(c) The resources of the lessor.
(d) The number of persons adversely affected.
(e) The extent to which the lessor's failure of compliance was intentional.
III. A lessor shall not be liable under this section if within 30 days after discovery of an error, and prior to the institution of an action under this section or the receipt of written notice of the error, the lessor notifies the person concerned of the error and makes whatever adjustments in the appropriate account are necessary to insure that the person will not be required to pay any amount in excess of the amount that should correctly have been charged.
IV. A lessor shall not be held liable in any action brought under this section for a violation of this chapter if the lessor shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance or procedures reasonably adopted to avoid any such error.
V. Except as otherwise specifically provided in this chapter, any civil action for a violation of this chapter which may be brought against the original lessor in any lease transaction may be maintained against any subsequent assignee of the original lessor where the violation from which the alleged liability arose is apparent on the face of the instrument assigned unless the assignment is involuntary.
VI. A person shall not take any action to offset any amount for which a lessor is potentially liable to such person under subparagraph I(b) of this section against any amount owing to such lessor by such person, unless the amount of the lessor's liability to such person has been determined by judgment of a court of competent jurisdiction in an action to which such person was a party.
VII. No provision of this section imposing any liability shall apply to any act done or omitted in good faith conformity with any rule, regulation or interpretation of state or federal law, notwithstanding that after such act or omission has occurred, such rule, regulation or interpretation is amended, rescinded or determined by judicial or other authority to be invalid for any reason.
VIII. The multiple failure to disclose any information required under this chapter to be disclosed in connection with a single lease transaction shall entitle the person to a single recovery under this section, but continued failure to disclose after a recovery has been granted shall give rise to rights to additional recoveries.
IX. Actions alleging a failure to disclose or otherwise comply with the requirements of this chapter shall be brought within one year of the termination of the lease agreement.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:23
361-D:23 Rescission of Agreement. –
If the lessor fails to comply with RSA 361-D:3, as an alternative to an action under RSA 361-D:22, the lessee may rescind the agreement if the failure to comply was willful, or if correction will increase the amount of the lease balance, unless the lessor waives the collection of the increased amount.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:24
361-D:24 Costs and Attorney's Fees. –
In any action by a consumer against the lessor based upon the alleged breach of a lease or other written agreement made in connection with lease of such motor vehicle, the court, in its discretion, may award to the plaintiff costs and reasonable attorney's fees. If the court determines that the action was brought with no substantial justification, it may award costs and reasonable attorney's fees to the defendant.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:25
361-D:25 Sale of Leased Vehicle; Applicable to Open-End Leases Only. –
I. At the termination or expiration of an open end lease, when disposing of a vehicle or obtaining cash bids for the purpose of setting the realized value of a vehicle, the lessor shall act in a commercially reasonable manner in the customary market for such vehicle.
II. Notwithstanding any provision in an open-end lease agreement to the contrary at least 10 days' written notice of intent to sell such motor vehicle shall be given by the lessor to the lessee, unless the lessor and lessee have agreed in writing to the amount of the lessee's liability under the lease agreement after the lessee returns the motor vehicle to the lessor, or the lessee has satisfied the lease agreement obligations by payment to the lessor. The notice shall be personally served or shall be sent by certified mail, return receipt requested, directed to the address of the lessee shown on the lease, unless the lessee has notified the holder in writing of a different address. The notice shall set forth separately any charges or sums due and state that the lessee will be liable for the difference between the amount of liability imposed on the lessee at the expiration of the lease term and the net sale proceeds of the motor vehicle when it is sold. The notice shall also state that the lessee has the right to redeem the vehicle by payment in full of the amount due to the lessor at any time up to the date of sale or other disposition of the vehicle.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:26
361-D:26 Duties of Lessor. –
A lessor shall not:
I. Fail to either register the leased vehicle pursuant to the lease agreement or provide the lessee with all documentation necessary to secure registration.
II. Advertise any specific vehicle in the inventory of the lessor for lease without identifying such vehicle by either its vehicle identification number or license number.
III. Refuse to lease an available vehicle to any creditworthy person at the advertised total lease amount.
IV. Notwithstanding the provisions of RSA 361-D:22, a lessor shall be held civilly liable for a violation of this section.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:27
361-D:27 Administrative Enforcement. –
In addition to the private rights created by this chapter, compliance with the requirements imposed under this chapter shall be enforced by the department of justice.
Source. 1996, 85:1, eff. Nov. 15, 1996.
Section 361-D:28
361-D:28 Rulemaking. –
The attorney general shall adopt rules, pursuant to RSA 541-A, relative to:
I. The information required to be included with the solicitation under RSA 361-D:2.
II. The guidelines for forms necessary to comply with the provision of RSA 361-D:3.
III. [Repealed.]
Source. 1996, 85:1, eff. Nov. 15, 1996. 2012, 171:26, XVII, eff. Aug. 10, 2012.