Untitled section

429.104

 

Definitions.

In this chapter:

429.104(1)

(1)

 

“Adjusted capitalized cost” means the amount computed by subtracting from capitalized cost any capitalized cost reduction, for the purpose of determining the base periodic payment.

429.104(2)

(2)

 

“Average periodic depreciation” means the adjusted capitalized cost, after first subtracting the residual value, divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.

429.104(3)

(3)

 

“Average periodic rent charge” means the rent charge for the scheduled term of the consumer lease divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.

429.104(3m)

(3m)

 

“Balance subject to a rent charge” means:

429.104(3m)(a)

(a)

In the case of a lease other than a single-payment lease, the amount calculated by subtracting from the adjusted capitalized cost the sum of the first base periodic payment and all depreciation amounts accrued during any preceding payment periods.

429.104(3m)(b)

(b)

In the case of a single-payment lease, the amount calculated by subtracting the total rent charge from the sum of the residual value and all rent charges accrued during any preceding computational periods.

429.104(4)

(4)

 

“Base periodic payment” means an amount determined as follows:

429.104(4)(a)

(a)

With respect to a single-payment lease, the product of the number of months in the scheduled term of the lease multiplied by the sum of the average periodic rent charge and the average periodic depreciation.

429.104(4)(b)

(b)

With respect to a lease other than a single-payment lease, the sum of the average periodic rent charge and the average periodic depreciation.

429.104(6)

(6)

 

“Capitalized cost reduction” means the sum, at the time of inception of the consumer lease, of any payments made by cash, check, rebates or the like that constitute a downpayment made by the lessee and the net amount credited by the lessor for any trade-in. The term does not include any base periodic payments due at the inception of the consumer lease.

429.104(7)

(7)

 

“Conspicuous” means that the term or clause is so written as to be distinguished from other terms or clauses by type size or in some other manner. The term includes any writing in at least 10-point boldface type.

429.104(9)

(9)

 

“Consumer lease” or “lease” means a lease entered into in this state that transfers the right of possession and use by a natural person of a motor vehicle primarily for a personal, family, household or agricultural purpose, for a period of time exceeding 4 months, if the total lease obligation, excluding any option to purchase or otherwise become owner of the motor vehicle at the expiration of the consumer lease, does not exceed $25,000. The term does not include a credit sale, as defined under 12 CFR 226.2 (a) (16) .

429.104(10)

(10)

 

“Early termination” means termination of a consumer lease before the termination date set forth in the consumer lease.

429.104(11)

(11)

 

“Federal consumer leasing act” means the federal consumer leasing act, as amended, 15 USC 1667-1667e , and regulations issued under that act.

429.104(12)

(12)

 

“Gap amount” means the difference between the amount to be paid by the lessee under the consumer lease in the event of total loss or destruction of the leased vehicle prior to expiration of the lease term by theft, physical damage, or other occurrence specified in the lease, and the actual cash value or portion thereof received by the lessor from insurance proceeds or from any other person on account of the total loss or destruction of the motor vehicle. The term does not include any deductible amount under any applicable insurance policy maintained by the lessee, any past-due payments owed by the lessee at the time of receipt by the lessor of the actual cash value or portion thereof from insurance proceeds or from any other person, or any other amount due under the lease resulting from default by the lessee.

429.104(13g)

(13g)

 

“Gap insurance” means insurance coverage, offered by an insurer authorized to transact business in this state, that provides that another person is liable for the gap amount.

429.104(13k)

(13k)

 

“Gap waiver” means a provision in a consumer lease offered or sold pursuant to the terms of s.