Sec. 42-413. Open-end consumer lease.
Sec. 42-413. Open-end consumer lease. (a) In an open-end consumer lease, the
estimated residual value must be a reasonable approximation of the anticipated fair
market value of the goods on expiration of the lease. The estimated residual value of
the goods is presumed to be unreasonable and not in good faith to the extent that the
estimated residual value exceeds the realized value by more than three times the average
payment allocable to a monthly period under the lease. The holder may not collect from
the lessee the amount presumed to be unreasonable unless the holder succeeds in an
action with respect to that amount. In all actions, the holder shall pay the lessee's reasonable attorney's fees.
(b) A presumption does not arise under subsection (a) of this section to the extent
the excess of estimated residual value over realized value is due to physical damage to
the goods beyond reasonable wear and use, or to excessive use, according to standards
set in the lease under section 42-423.
(c) This section does not preclude a lessee, after expiration of the consumer lease,
from agreeing to a final adjustment with respect to residual value.
(d) Upon expiration of an open-end consumer lease, the lessee may obtain at the
lessee's expense a professional appraisal of the leased goods by an independent third
party agreed to by the lessee and holder. The appraisal is final and binding on the parties.
(P.A. 02-81, S. 24.)
History: P.A. 02-81 effective July 1, 2003.