§ 341 — Restriction on early termination liability

§ 341. Restriction on early termination liability. 1. If an agreement\nis terminated early and there is no option to purchase the vehicle or\nthe lessee does not exercise any option he or she may have to purchase\nthe vehicle, the early termination obligation of the lessee may not\nexceed an amount equal to the sum of:\n (a) any unpaid rental payments that accrued through the date of early\ntermination;\n (b) any other unpaid charges, other than excess mileage charges,\narising from the failure of the lessee to fulfill his or her obligations\nunder the agreement;\n (c) any official fees and taxes imposed in connection with lease\ntermination;\n (d) a reasonable disposition fee or, in lieu thereof, the reasonable\ncosts of retaking, storing, preparing for sale and selling the vehicle;\n (e) the difference, if any, between: (i) the adjusted capitalized\ncost, and (ii) the sum of all depreciation amounts accrued through the\ndate of early termination, calculated in accordance with the constant\nyield method or any other generally accepted actuarial method, and the\nrealized value of the vehicle; and\n (f) an additional early termination charge which is reasonable in\nlight of the anticipated or actual harm caused by the default or early\ntermination, the difficulties of proof of loss and the inconvenience or\nnonfeasibility of otherwise obtaining an adequate remedy.\n As an alternative to the constant yield and other generally accepted\nactuarial methods of determining the depreciation amounts accrued\nthrough the date of early termination of a precomputed lease\ntransaction, those amounts may be determined under paragraph (e) of this\nsubdivision by using a retail lease agreement under which the lease\ncharge is calculated on the adjusted capitalized cost for the time\noutstanding according to a generally accepted actuarial method.\n 2. This section does not limit or restrict the manner of calculating\nthe early termination liability of a lessee, whether by way of\nunamortized capitalized cost, discounted present value of remaining\nrental payments, multiples of monthly payments or otherwise, so long as\nthe early termination liability of the lessee does not exceed that\npermitted by this section.\n 3. Any refundable security deposit or advance rental payment held by\nthe holder may be retained by the holder and shall be credited against\nthe early termination obligation of the lessee.\n 4. There shall be no early termination liability to the lessee if he\nor she has deceased before the end of such lease.\n