PARRIS N. GLENDENING, Governor

Ch. 602

(3) The manufacturer or factory branch, its agent or its authorized dealer,
or the lessor or the lessor's agent shall correct the nonconformity, defect, or condition at
no charge to the lessee, even if repairs are made after the expiration of the warranty
period.

(d) (1) (i) If, during the warranty period, the manufacturer or factory branch,
its agent or authorized dealer, or the lessor or the lessor's agent is unable to repair or
correct any nonconformity, defect, or condition that substantially impairs the use and
market value of the motor vehicle to the lessee after a reasonable number of attempts, the
manufacturer or factory branch, at the option of the lessee shall:

1.       Replace the motor vehicle with a comparable motor vehicle
acceptable to the lessee; or

2.       Accept return of the motor vehicle from the lessee and
refund to the lessee all moneys paid by the lessee to repair the defect, condition, or
nonconformity pursuant to a lease, including all excise tax, license fees, registration fees,
and any similar governmental charges, less a reasonable allowance for the lessee's
unimpaired use of the vehicle; and

(ii) In the event a motor vehicle is replaced under paragraph (1)(i)1 of
this subsection and provided that the lessee meets the lessor's then current credit criteria
with respect to the lease, the lessor shall:

manufacturer;

1. Transfer the title of the defective MOTOR vehicle to the

2. Accept title to the comparable replacement MOTOR vehicle;

3.       Transfer possession of the comparable replacement MOTOR
vehicle to the lessee; and

4.       Execute a lease agreement with the lessee with the same time
period, terms, and conditions of the original lease.

(2)     (i) In the event a manufacturer accepts return of a motor vehicle,
under paragraph (l)(i)2 of this subsection, the lessee shall be compensated BY THE
MANUFACTURER for any moneys paid during the period in which the MOTOR vehicle
was not available due to the defect, condition, or nonconformity AND THE LESSOR
SHALL BE PAID BY THE MANUFACTURER ALL AMOUNTS DUE TO THE LESSOR
UNDER THE TERMS OF THE LEASE.

(ii) This subsection shall be construed to provide a mechanism through
which the lessee and the lessor shall be made whole for losses incurred as a result of a
motor vehicle's nonconformity, defect, or condition, and actions taken to conform the
motor vehicle to applicable warranties.

(3)     If a manufacturer, factory branch, dealer, or lessor accepts return of a
motor vehicle as described under paragraph (1)(i) of this subsection, the lessee may not
be obligated to pay any penalties, early termination fees, or other charges as a
consequence of the return of the MOTOR vehicle.

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