2012 New York Consolidated Laws
PEP - Personal Property
Article 9-A - (330 - 353) MOTOR VEHICLE RETAIL LEASING ACT
341 - Restriction on early termination liability.

 
    § 341. Restriction on early termination liability. 1.  If an agreement
  is  terminated  early  and there is no option to purchase the vehicle or
  the lessee does not exercise any option he or she may have  to  purchase
  the  vehicle,  the  early  termination  obligation of the lessee may not
  exceed an amount equal to the sum of:
    (a) any unpaid rental payments that accrued through the date of  early
  termination;
    (b)  any  other  unpaid  charges,  other  than excess mileage charges,
  arising from the failure of the lessee to fulfill his or her obligations
  under the agreement;
    (c) any official fees and  taxes  imposed  in  connection  with  lease
  termination;
    (d)  a  reasonable disposition fee or, in lieu thereof, the reasonable
  costs of retaking, storing, preparing for sale and selling the vehicle;
    (e) the difference, if any,  between:  (i)  the  adjusted  capitalized
  cost,  and  (ii) the sum of all depreciation amounts accrued through the
  date of early termination, calculated in accordance  with  the  constant
  yield  method  or any other generally accepted actuarial method, and the
  realized value of the vehicle; and
    (f) an additional early termination  charge  which  is  reasonable  in
  light  of  the anticipated or actual harm caused by the default or early
  termination, the difficulties of proof of loss and the inconvenience  or
  nonfeasibility of otherwise obtaining an adequate remedy.
    As  an  alternative to the constant yield and other generally accepted
  actuarial  methods  of  determining  the  depreciation  amounts  accrued
  through   the   date   of  early  termination  of  a  precomputed  lease
  transaction, those amounts may be determined under paragraph (e) of this
  subdivision by using a retail lease  agreement  under  which  the  lease
  charge  is  calculated  on  the  adjusted  capitalized cost for the time
  outstanding according to a generally accepted actuarial method.
    2. This section does not limit or restrict the manner  of  calculating
  the  early  termination  liability  of  a  lessee,  whether  by  way  of
  unamortized capitalized cost,  discounted  present  value  of  remaining
  rental  payments, multiples of monthly payments or otherwise, so long as
  the early termination liability of  the  lessee  does  not  exceed  that
  permitted by this section.
    3.  Any  refundable security deposit or advance rental payment held by
  the holder may be retained by the holder and shall be  credited  against
  the early termination obligation of the lessee.