Sec. 42-418. Lessee's default. Right to cure.
Sec. 42-418. Lessee's default. Right to cure. (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.