WILLIAM DONALD SCHAEFER, Governor                    Ch. 577

VIOLATION OF THIS SUBTITLE SHALL BE AN UNFAIR AND DECEPTIVE
TRADE PRACTICE WITHIN THE MEANING OF TITLE 13 OF THIS ARTICLE.

Article - Transportation

11-127.1.

(A)  IN THIS TITLE, THE FOLLOWING TERMS HAVE THE MEANINGS
INDICATED.

(B)  "LEASE INTENDED AS SECURITY" MEANS A LEASE OF A VEHICLE
BY AN INDIVIDUAL PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD
PURPOSES FOR MORE THAN 180 CONSECUTIVE DAYS, INCLUDING RENEWAL
PERIODS, IN WHICH:

(1)  THE LESSEE IS PROVIDED THE OPTION TO PURCHASE THE
LEASED VEHICLE; AND

(2) AT THE TIME THE LEASE IS CONSUMMATED, THE LESSOR
AND LESSEE AGREE TO THE CONSIDERATION OR THE METHOD FOR COMPUTING
CONSIDERATION FOR THE LESSEE'S EXERCISE OF THE OPTION TO PURCHASE
THE LEASED VEHICLE.

(2) UNDER THE TERMS OF THE PURCHASE OPTION, THE
LESSEE BECOMES OR HAS THE OPTION TO BECOME THE OWNER OF THE
VEHICLE FOR:

(I) NO ADDITIONAL CONSIDERATION; OR

(II) 1. IN THE CASE OF A NEW VEHICLE, A NOMINAL
CONSIDERATION OF:

A. 20 PERCENT OR LESS OF THE "VALUE AT
CONSUMMATION" OF THE VEHICLE AS THAT TERM IS DEFINED IN 12 C.F.R.
§ 213.2(A)(18); OR

B. IF THE VALUE OF CONSUMMATION IS NOT
STATED IN THE LEASE, 20 PERCENT OR LESS OF THE MONRONE STICKER
PRICE FOR THE VEHICLE; OR

2. IN THE CASE OF A USED VEHICLE, A
NOMINAL CONSIDERATION OF 20 PERCENT OR LESS OF THE WHOLESALE
VALUE OF THE VEHICLE AS SHOWN IN THE OFFICIAL USED CAR GUIDE OF
THE NATIONAL AUTOMOBILE DEALER'S ASSOCIATION (N.A.D.A.), TAKING
INTO ACCOUNT ACCESSORIES AND MILEAGE PLUS ANY COSTS INCURRED BY
THE LESSOR IN REPAIRING AND SERVICING THE VEHICLE IN ANTICIPATION
OF A LEASE.

(C) "LEASE NOT INTENDED AS SECURITY" MEANS A LEASE OF A
VEHICLE BY AN INDIVIDUAL PRIMARILY FOR PERSONAL, FAMILY, OR
HOUSEHOLD PURPOSES FOR MORE THAT 180 CONSECUTIVE DAYS, INCLUDING
RENEWAL PERIODS, IN WHICH:

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