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.