§ 340 — Establishment of realized value at lease termination when purchase option not exercised; notice of intention to sell motor vehicle

New York § 340

• Jurisdiction: New York
• Law PEP: Personal Property
• Art. 9-A: Motor Vehicle Retail Leasing Act

Text

§ 340. Establishment of realized value at lease termination when\npurchase option not exercised; notice of intention to sell motor\nvehicle. 1. If an agreement is terminated early and there is no option\nto purchase the vehicle or the lessee does not exercise any option he or\nshe may have to purchase the vehicle, or if the lessee's liability at\nthe scheduled end of the lease term is based upon the estimated residual\nvalue of the vehicle and the lessee does not exercise any option he or\nshe may have to purchase the vehicle, the holder shall act in a\ncommercially reasonable manner when disposing of the vehicle or\nobtaining cash bids for the purpose of establishing the realized value\nof the vehicle, which may be its value in the customary wholesale\nmarket. A lessee whose agreement is terminated early without the\nexercise of a purchase option or whose liability at the scheduled end of\nthe lease term is based upon the estimated residual value of the vehicle\nmay obtain, at his or her expense, a professional appraisal by an\nindependent third party agreed to by the lessee and the holder of the\nwholesale value which could be realized at sale of the leased vehicle.\nIf a professional appraisal is obtained by such a lessee, the appraised\nvalue shall be final and binding upon the parties and shall be used as\nthe realized value in determining the liability of the lessee at early\ntermination or at the scheduled end of the lease term.\n 2. If an agreement is terminated early and there is no option to\npurchase the vehicle or the lessee does not exercise any option he or\nshe may have to purchase the vehicle, or if the lessee's liability at\nthe scheduled end of the lease term is based upon the estimated residual\nvalue of the vehicle and the lessee does not exercise any option he or\nshe may have to purchase the vehicle, the holder shall give the lessee\nat least ten days written notice of its intention to sell the motor\nvehicle. A notice of intention to sell the vehicle need not be given if\nthe holder and lessee have agreed in writing to the amount of the\nlessee's liability under the retail lease agreement after the lessee\nreturns the vehicle to the holder or the lessee has fully satisfied his\nor her obligations under the agreement. A holder gives notice to the\nlessee under this subdivision when he or she delivers the notice to the\nlessee or mails the notice to him or her at his or her last known\naddress.\n 3. The notice of intention to sell the vehicle shall set forth\nseparately any charges or sums due under the agreement and shall clearly\nand conspicuously state that the lessee will be liable for the\ndifference between the estimated residual value of the vehicle and its\nrealized value, if such liability exists. The notice also shall state\nthat the lessee has the right to submit a cash bid for the purchase of\nthe vehicle.\n