Ch. 6                                          LAWS OF MARYLAND

"Franchise" means a written arrangement, whether or not for
a definite period, in which a manufacturer, distributor, or
factory branch[,] grants to a dealer or distributor a license or
right to use a trade name, trademark, service mark, or related
characteristic in the sale, leasing, or servicing of new
vehicles.

DRAFTER'S NOTE:

Error: Extraneous punctuation in § 11-125 of the
Transportation Article.

Occurred: Ch. 14, Acts of 1977.

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)  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%] 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)] (B) "Lease not intended as security" means a lease of

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