BILL REQ. #: S-1148.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/04/11. Referred to Committee on Labor, Commerce & Consumer Protection.
AN ACT Relating to leases incident to service contracts; and amending RCW 63.10.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 63.10.040 and 1998 c 113 s 2 are each amended to read
as follows:
(1) In any lease contract subject to this chapter, the following
items, as applicable, shall be disclosed:
(a) A brief description of the leased property, sufficient to
identify the property to the lessee and lessor.
(b) The total amount of any payment, such as a refundable security
deposit paid by cash, check, or similar means, advance payment,
capitalized cost reduction, or any trade-in allowance, appropriately
identified, to be paid by the lessee at consummation of the lease.
(c) The number, amount, and due dates or periods of payments
scheduled under the lease and the total amount of the periodic
payments.
(d) The total amount paid or payable by the lessee during the lease
term for official fees, registration, certificate of title, license
fees, or taxes.
(e) The total amount of all other charges, individually itemized,
payable by the lessee to the lessor, which are not included in the
periodic payments. This total includes the amount of any liabilities
the lease imposes upon the lessee at the end of the term, but excludes
the potential difference between the estimated and realized values
required to be disclosed under (m) of this subsection.
(f) A brief identification of insurance in connection with the
lease including (i) if provided or paid for by the lessor, the types
and amounts of coverages and cost to the lessee, or (ii) if not
provided or paid for by the lessor, the types and amounts of coverages
required of the lessee.
(g) A statement identifying any express warranties or guarantees
available to the lessee made by the lessor or manufacturer with respect
to the leased property.
(h) An identification of the party responsible for maintaining or
servicing the leased property together with a brief description of the
responsibility, and a statement of reasonable standards for wear and
use, if the lessor sets such standards.
(i) A description of any security interest, other than a security
deposit disclosed under (b) of this subsection, held or to be retained
by the lessor in connection with the lease and a clear identification
of the property to which the security interest relates.
(j) The amount or method of determining the amount of any penalty
or other charge for delinquency, default, or late payments.
(k) A statement of whether or not the lessee has the option to
purchase the leased property and, if at the end of the lease term, at
what price, and, if prior to the end of the lease term, at what time,
and the price or method of determining the price.
(l) A statement of the conditions under which the lessee or lessor
may terminate the lease prior to the end of the lease term and the
amount or method of determining the amount of any penalty or other
charge for early termination.
(m) A statement that the lessee shall be liable for the difference
between the estimated value of the property and its realized value at
early termination or the end of the lease term, if such liability
exists.
(n) Where the lessee's liability at early termination or at the end
of the lease term is based on the estimated value of the leased
property, a statement that the lessee may obtain at the end of the
lease term or at early termination, at the lessee's expense, a
professional appraisal of the value which could be realized at sale of
the leased property by an independent third party agreed to by the
lessee and the lessor, which appraisal shall be final and binding on
the parties.
(o) Where the lessee's liability at the end of the lease term is
based upon the estimated value of the leased property:
(i) The value of the property at consummation of the lease, the
itemized total lease obligation at the end of the lease term, and the
difference between them.
(ii) That there is a rebuttable presumption that the estimated
value of the leased property at the end of the lease term is
unreasonable and not in good faith to the extent that it exceeds the
realized value by more than three times the average payment allocable
to a monthly period, and that the lessor cannot collect the amount of
such excess liability unless the lessor brings a successful action in
court in which the lessor pays the lessee's attorney's fees, and that
this provision regarding the presumption and attorney's fees does not
apply to the extent the excess of estimated value over realized value
is due to unreasonable wear or use, or excessive use.
(iii) A statement that the requirements of (o)(ii) of this
subsection do not preclude the right of a willing lessee to make any
mutually agreeable final adjustment regarding such excess liability.
(p) In consumer leases of motor vehicles:
(i) The gross capitalized cost stated as a total and the identity
of the components listed in the definition of gross capitalized cost
and the respective amount of each component;
(ii) Any capitalized cost reduction stated as a total;
(iii) A statement of adjusted capitalized cost;
(iv) If the lessee trades in a motor vehicle, the amount of any
sales tax exemption for the agreed value of the traded vehicle and any
reduction in the periodic payments resulting from the application of
the sales tax exemption shall be disclosed in the lease contract; and
(v) A statement of the total amount to be paid prior to or at
consummation or by delivery, if delivery occurs after consummation.
The lessor shall itemize each component by type and amount and shall
itemize how the total amount will be paid, by type and amount.
(2) Where disclosures required under this chapter are the same as
those required under Title I of the federal consumer protection act (90
Stat. 257, 15 U.S.C. Sec. 1667 et seq.), which is also known as the
federal consumer leasing act, as of the date upon which the consumer
lease is executed, disclosures complying with the federal consumer
leasing act shall be deemed to comply with the disclosure requirements
of this chapter: PROVIDED, That a lease incident to a service contract
must disclose all requirements under this chapter, even if exempted
under Title I of the federal consumer protection act (90 Stat. 257, 15
U.S.C. Sec. 1667 et seq.), which is also known as the federal consumer
leasing act.