(a) Subject to subsection (b) of this section, the amount of the realized value, if used to determine the lessee's liability on termination of a consumer lease, is the sum of:
(1) The amount of the rebate of premiums or charges for insurance, extended warranty, or service or maintenance contract to the extent the rebates are received by the holder; and
(2) One of the following:
(A) The price received by the holder on disposition of the leased goods by sale;
(B) If the goods are re-leased, the total of periodic payments plus the residual value under the new lease, reduced to present value; or
(C) If the goods are not disposed of, the higher of: (i) The best offer for disposition of the goods; or (ii) the fair market value of the goods.
(b) A lessee and holder under a consumer lease may agree at the time of termination on the realized value of the goods, or may agree in the lease or at the time of termination on a method for determining it, and the value so agreed upon or determined, unless unreasonable, is the realized value. An agreed realized value is not unreasonable if the value is determined by an appraiser agreed to by the holder and lessee, or by reference to a generally accepted reference source for goods of the kind.
(c) If the realized value is determined under subparagraph (A) or (B) of subdivision (2) of subsection (a) of this section, the disposition may be by public or private sale or re-lease, at any time and place and on any terms. Every aspect of the disposition, including the method, manner, time, place and terms must be commercially reasonable. Disposition in a wholesale market is not unreasonable.
(d) If a disposition is to a person related to the holder, or a person obligated to the holder under an agreement for recourse, repurchase or the like, the realized value is not less than the fair market value of the goods.
(e) If a disposition is not commercially reasonable, the realized value must be established by reference to the retail market value of goods of the kind and condition at issue.
(P.A. 02-81, S. 31.)
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.