N.Y. Personal Property Law § 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.

4. There shall be no early termination liability to the lessee if he

or she has deceased before the end of such lease.