2010 New York Code
PEP - Personal Property
Article 9-A - (330 - 353) MOTOR VEHICLE RETAIL LEASING ACT
331 - Definitions.

§  331.  Definitions.  In  this article, unless the context or subject
  matter otherwise requires:
    1. "Motor vehicle" or "vehicle" means any device propelled or drawn by
  any power other than muscular power, upon or  by  which  any  person  or
  property  is  or may be transported or drawn upon a public highway, road
  or street. The term does  not  include  a  "snowmobile"  as  defined  in
  subdivision three of section 21.05 of the parks, recreation and historic
  preservation  law  or  other vehicles not designed primarily for highway
  transportation, but which may incidentally transport persons or property
  on a public highway.
    2. "Retail lessee" or "lessee" means a natural  person  who  leases  a
  motor  vehicle  from  a  retail lessor primarily for personal, family or
  household use and who executes a retail lease  agreement  in  connection
  therewith.    For  purposes  of  section  three  hundred thirty-four and
  subdivisions two and three of section three hundred  forty-six  of  this
  article, the term also includes a person who makes a payment to a lessor
  or  leaves  his  vehicle with a lessor pending the execution of a retail
  lease  agreement.    Except  as  provided  in  sections  three   hundred
  forty-eight  and three hundred forty-nine of this article, the term does
  not  include  a  person  who  leases  a  motor  vehicle  primarily   for
  agricultural,   business  or  commercial  use  or  for  the  purpose  of
  subleasing.
    3. "Retail lessor" or "lessor" means a person regularly engaged in the
  business of leasing or selling motor vehicles who leases a motor vehicle
  to a retail lessee under or subject to a retail lease agreement.
    4. "Retail lease" or "lease" means a transfer from a retail lessor  to
  a retail lessee of the right to possession and use of a motor vehicle in
  return  for consideration. The term does not include a sale, including a
  sale on approval or a sale  or  return,  a  retail  instalment  sale  as
  defined  in article nine of this chapter or the retention or creation of
  a security interest in a motor vehicle.
    5. "Retail lease agreement" or "agreement" means an agreement, entered
  into in this state, for the lease of a  motor  vehicle,  and  which  may
  include  the  purchase  of  goods  or  services incidental thereto, by a
  retail lessee for a scheduled term exceeding four months, whether or not
  the lessee has the option to purchase or otherwise become the  owner  of
  the  vehicle  at the expiration of the agreement. The term includes such
  an agreement wherever entered into if executed by  the  lessee  in  this
  state and if solicited in person by a person acting on his own behalf or
  that  of  the  lessor.  The  term  does  not include a retail instalment
  contract or a rental-purchase agreement as defined in articles nine  and
  eleven  of  this  chapter. An agreement that substantially complies with
  this article does not create a security interest in a motor  vehicle  as
  the  term  "security interest" is defined in subdivision thirty-seven of
  section 1-201 of the uniform commercial code.
    6. "Additional early termination  charge"  means  the  initial  dollar
  amount  of  the  early  termination  charge  the  portion  of  which  is
  recoverable by the holder upon early  termination  in  addition  to  the
  amounts  specified  in  paragraphs (a) through (e) of subdivision one of
  section three hundred forty-one of this article.  The  additional  early
  termination  charge  may  only  include  amounts which are reasonable in
  light of the anticipated or  actual  harm  caused  by  the  delinquency,
  default  or early termination, the difficulties of proof of loss and the
  inconvenience or  nonfeasibility  of  otherwise  obtaining  an  adequate
  remedy. Any fees or charges included in the additional early termination
  charge may not also be included in the capitalized cost.
    * 7.  "Initial early termination charge" means the sum of the adjusted
  initial lease value and the additional early termination  charge,  which

would  be recoverable under the lease agreement if the agreement were to
  be terminated before any of the periodic rental payments had become due.
  The term does not include any  vehicle  disposition  fee  or  any  other
  components  of  a  lessee's  early termination liability which could not
  have been incurred by the lessee at lease inception.
    * NB There are 2 sb 7's
    * 7. "Adjusted capitalized cost" means the capitalized cost  less  any
  capitalized  cost reduction payments made by the lessee at the inception
  of the lease and any net trade-in allowance granted by the lessor.
    * NB There are 2 sb 7's
    8.  "Anticipated  assignee"  means  the  person  to  whom  the  lessor
  anticipates  that  the  agreement  will  be  assigned  and  to  whom the
  agreement subsequently is assigned by the lessor.
    9. "Base rental payment" means that portion of the  monthly  or  other
  periodic  rental  payment  which is equal to the sum of: (a) the average
  monthly or other periodic lease charge; and (b) the average  monthly  or
  other  periodic  depreciation. For purposes of this article, the average
  monthly or other periodic depreciation may include a  monthly  or  other
  periodic  charge  for  any  item  that  the  lessor  has included in the
  capitalized cost.
    10. "Conspicuous" means that a term or clause is  so  written  that  a
  reasonable  person  against  whom it is to operate ought to have noticed
  it. Whether or not a term or clause is conspicuous is a question of  law
  for decision by the court.
    11.  "Capitalized  cost"  means the agreed upon amount which serves as
  the basis for determining the base rental payment and a portion  of  the
  early  termination  liability  of  the  lessee. The capitalized cost may
  include any taxes, registration,  license  acquisition,  assignment  and
  other  fees  and  charges for insurance, for a waiver of the contractual
  obligation  to  pay  the  gap  amount,   for   accessories   and   their
  installation,  for  delivering,  servicing,  repairing  or improving the
  motor vehicle and for other services incidental  to  the  agreement.  It
  also  may  include  the  unpaid  balance of any amount financed under an
  outstanding  motor  vehicle  loan  agreement  or  motor  vehicle  retail
  instalment  contract  or  the  unpaid  portion  of the early termination
  obligation under an outstanding motor vehicle  retail  lease  agreement.
  The term does not include any lease charge or any amount included in the
  additional early termination charge.
    12.  "Capitalized  cost  reduction"  means  any payments made by cash,
  check or similar means that are in the nature of  downpayments  made  by
  the lessee at the inception of the lease for the purpose of reducing the
  capitalized cost.
    13.  "Constant  yield  method"  means:  (a)  in the case of a periodic
  payment lease, that method of determining the lease  charge  portion  of
  each  base  rental  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  is  the difference between the adjusted capitalized cost and the
  sum of: (i)  all  depreciation  amounts  accrued  during  the  preceding
  computational  periods;  and  (ii) the first base rental payment; (b) in
  the  case  of  a  single  or  advance  payment  lease,  that  method  of
  determining  the periodic earning of lease charges 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 scheduled lease term.
  At any given time during the scheduled  term  of  a  single  or  advance

payment  lease,  the  balance  subject  to lease charge is determined by
  subtracting from the estimated residual value  the  total  lease  charge
  scheduled  to  be  earned  over  the term of the lease and adding to the
  difference  all lease charges accrued during the preceding computational
  periods; (c) in the case of either type of  lease,  the  periodic  lease
  charge  calculations  are  based  on the assumption that the holder will
  receive the rental payments on their exact due dates and that the  lease
  goes to its full term.
    14. "Estimated residual value" means the estimated value of the leased
  vehicle  at  the  scheduled end of the lease term, used by the lessor in
  determining the base rental payment, as established by the lessor at the
  time he enters into a retail lease agreement.
    15. "Gap amount" has the meaning ascribed to it in paragraph fifty-two
  of subsection (a) of section one hundred seven of the insurance law.
    16. "Gap insurance" has  the  meaning  ascribed  to  it  in  paragraph
  twenty-six  of  subsection  (a)  of  section  one  thousand  one hundred
  thirteen of the insurance law. For purposes of paragraphs (a) and (b) of
  subdivision six of section three hundred thirty-seven of  this  article,
  gap  insurance  shall not be deemed "liability insurance or insurance on
  the vehicle".
    17. "Group credit insurance" means group credit life insurance,  group
  credit  accident  insurance, group credit health insurance, group credit
  accident and health insurance or group credit unemployment insurance.
    18. "Holder" means the retail lessor  of  a  motor  vehicle  under  or
  subject to a retail lease agreement or, if the agreement is purchased by
  an  assignee,  the  assignee.  Unless  and  until  it  realizes upon its
  security interest therein, the term does not include a pledgee of one or
  more lease agreements to secure a bona fide loan thereon.
    19. "Lease charge" means the charge to be paid by  the  retail  lessee
  for  the  privilege  of  making the rental payments as scheduled under a
  retail lease agreement. The term does not include any amount included in
  the capitalized cost. The term also does not  include  any  delinquency,
  default,  disposition,  early  termination, collection, or reinstatement
  charge and the amount, if any, included in a retail lease agreement  for
  taxes,  registration, license acquisition, assignment and other fees and
  charges for insurance,  for  accessories  and  their  installation,  for
  delivering,  servicing, repairing or improving the motor vehicle and for
  other services incidental to the agreement, whether or not such  amounts
  are  included  in  the  capitalized  cost,  paid for separately at lease
  inception by cash, check or similar means or paid for on  a  monthly  or
  other periodic basis in addition to the base rental payment.
    20.   "Person"   means   an   individual,   partnership,  corporation,
  association or other group, however organized.
    21. "Precomputed lease transaction" means a retail  lease  transaction
  in  which  the  base  rental  obligation  is  a sum comprising the total
  depreciation estimated to occur during the scheduled term of  the  lease
  and  the  amount  of  the lease charge computed in advance. A disclosure
  required by the act of Congress entitled "Consumer Leasing Act of  1976"
  does not in itself make a lease charge or transaction precomputed.
    22.  "Realized  value" means: (a) the price received by the holder for
  the leased vehicle at disposition; (b) the highest offer received by the
  holder for disposition of the leased vehicle; or  (c)  the  fair  market
  value  of the vehicle, determined pursuant to subdivision one of section
  three hundred forty of this article by a mutually acceptable independent
  appraiser, at the scheduled end of the lease term or, if  the  lease  is
  terminated  prior  thereto,  at early termination. The realized value of
  the vehicle may be its value in the customary wholesale market.

23. "Renegotiation" means the satisfaction of an existing retail lease
  agreement and the replacement of the existing agreement by a  new  lease
  agreement  undertaken  by the same lessor or holder and the same lessee.
  The term does not include: (a) the substitution of the leased vehicle or
  the  addition  or return of a vehicle in a multiple-vehicle lease, if in
  either case the average payment allocable to  a  rental  period  is  not
  increased  by more than twenty-five percent; (b) a deferral or extension
  of one or more periodic payments, or portions of a periodic payment; (c)
  a reduction in charges in the agreement; (d) an  agreement  involving  a
  court  proceeding;  or  (e)  any other agreement or event which does not
  constitute  a  "renegotiation"  under  the  act  of  Congress   entitled
  "Consumer  Leasing  Act of 1976" and the regulations thereunder, as such
  act and regulations may from time to time be amended.
    24. Words in the singular include the plural and vice versa.