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.