(a) A provision of a consumer lease stating events of default by the lessee is enforceable only to the extent that:
(1) The lessee does not make a payment required by the lease; or
(2) The holder establishes that the prospect of payment, performance or realization of the holder's interest in the goods is significantly impaired.
(b) If a default is solely the lessee's failure to make a payment required under the lease and the lessee has not voluntarily surrendered the leased goods to the holder, a holder may not accelerate, take judicial action to collect, or repossess the leased goods unless the holder initiates a procedure for cure under this section and the lessee does not cure the default in a timely manner.
(c) A holder may initiate a procedure for cure by sending to the lessee, at any time after the lessee has been in default for ten days, a notice of right to cure the default. The notice must be in a record, contain a conspicuous statement that the lessee is entitled to cure the default and set forth the monetary amount necessary to cure the default, the date by which the curative payment is due and the name, address and telephone number of the holder from which information may be obtained regarding the cure. The date by which payment is due may not be less than twenty days after the notice is sent.
(d) Within the period for cure stated in the notice under subsection (c) of this section, the lessee may cure the default by tendering the amount of all unpaid sums due at the time of the tender, including any unpaid delinquency or default charges, but without additional security deposit or prepayment of periodic payments not yet due. Cure restores the rights of holder and lessee under the lease as if the default had not occurred.
(e) A lessee has the right to cure only once in any twelve-month period during the period of the lease.
(P.A. 02-81, S. 29.)
History: P.A. 02-81 effective July 1, 2003.
Structure Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 743aa - Consumer Leases
Section 42-390. - Short title: Consumer Leases Act.
Section 42-391. - Definitions.
Section 42-392. - Time of consummation. Expiration. Termination.
Section 42-393. - Scope. Exclusions. Sale incident to lease.
Section 42-394. - Characterization of lease. Applicability by agreement.
Section 42-396. - Waiver. Agreement to forego rights in settlement of claim.
Section 42-397. - Limitation on choice of law and venue.
Section 42-398. - Obligation of good faith.
Section 42-399. - Unconscionability.
Section 42-400. - Relation to Electronic Signatures in Global and National Commerce Act.
Section 42-401. - Advertising.
Section 42-402. - Availability of sample lease form.
Section 42-403. - Disclosure. Form of consumer lease. Copy to lessee.
Section 42-404. - Insurance. Insurance disclosures.
Section 42-405. - Notice to guarantor.
Section 42-407. - Payment or trade-in pending approval of lease. Refund or return.
Section 42-408. - Prohibited lease provisions.
Section 42-409. - Security interest restricted. Security deposit.
Section 42-410. - Late fees. Delinquency and default charges. Attorney's fees.
Section 42-411. - Assignment of lease. Preservation of lessee's claims and defenses.
Section 42-413. - Open-end consumer lease.
Section 42-414. - Limit on insurance charges. Termination or replacement of insurance.
Section 42-415. - Rebate or discount for referrals.
Section 42-416. - Limitation on supplier's disclaimer of implied warranty.
Section 42-417. - Liability for gap amount on total loss of goods.
Section 42-418. - Lessee's default. Right to cure.
Section 42-419. - Repossession. Application of realized value. Electronic self help.
Section 42-420. - Determining realized value.
Section 42-421. - Early termination liability.
Section 42-422. - Reporting early termination to consumer reporting agency.
Section 42-423. - Excess wear and tear. Excess mileage.
Section 42-424. - Private remedies.
Section 42-425. - Reliance on lessee's representations.
Section 42-426. - Statute of limitations.
Section 42-427. - Limitations on private remedies.
Section 42-428. - Civil liability of assignees.
Section 42-429. - Effect of violation on rights of parties. Single recovery.
Section 42-430. - Administrative enforcement.
Section 42-431. - Administration.