§ 14-2002. Contents of lease agreement
West's Annotated Code of MarylandCommercial Law
MD Code, Commercial Law, § 14-2002
§ 14-2002. Contents of lease agreement
(b) The printed portion of the lease, other than directions for completion of the lease and the text of any assignment between the original lessor and an assignee, shall be printed in a size equal to at least 8 point type. The lease shall contain the following items printed or written in a conspicuous manner:
(2) If physical damage or liability insurance coverage for bodily injury and property damage caused to others is not included in the lease, a notice substantially similar to the following: “No physical damage or liability insurance coverage for bodily injury or property damage caused to others is included in this lease”;
(3) Directly above the acknowledgment permitted by subsection (c) of this section, a written notice substantially similar to the following: “Notice to the lessee: This is a lease. You have no ownership rights in the motor vehicle unless and until you exercise your option to purchase the motor vehicle, if this lease contains a purchase option. Do not sign this lease before you read it or if it contains any blank space. You are entitled to a completely filled in copy of this lease when you sign it”;
“Notice
Any holder of this consumer lease is subject to all claims and defenses which the lessee could assert against the lessor of the motor vehicle. Recovery hereunder by the lessee shall not exceed amounts paid by the lessee under this lease.”
(d) The lease shall state the names of the original lessor and lessee, the place of business of the original lessor, the residence of the lessee as specified by the lessee, and a description of the motor vehicle, including its make, model year, model, and, if known, the motor vehicle's identification number or marks.
(f)(1) If the lessee is obligated under the lease to maintain liability insurance or other insurance on the motor vehicle and if subsequent to execution of the lease the lessee fails to maintain the required insurance, if the lease permits, the lessor may procure insurance for either the interests of the lessee and the lessor or the interest of either of them insuring substantially the same risks required to be insured by the lease.
(3) The lessee's written acknowledgment, conforming to the requirements of subsection (c) of this section, of delivery of a copy of the lease shall be conclusive proof of delivery of a copy of the consumer lease in any action or proceeding by or against an assignee of the lease without knowledge to the contrary at the time of the assignment.
(2) No filing of the assignment, no notice to the lessee of the assignment, and no requirement that the lessor be deprived of dominion over payments upon the lease or over the motor vehicle if repossessed by or returned to the lessor, shall be necessary to the validity of a written assignment of a lease as against creditors, subsequent purchasers, pledgees, mortgagees, or encumbrancers of the lessor.
(k)(1) Upon written request from a lessee, the lessor shall give or forward to the lessee a written statement of the dates and amounts of the payments that have been made under the lease and the amount of the lessee's remaining payments and any other amounts owed to the lessor as reflected on the lessor's books and records at the time of the notice.
(6) The lessee executes a power of attorney appointing the lessor, or other person acting on behalf of the lessor, as the lessee's agent in collection of payments under the lease or in the repossession of the motor vehicle; provided, however, that this paragraph shall not prohibit the inclusion in a lease of a limited power of attorney or other provision authorizing the lessor to execute in the lessee's name any proofs of insurance claims or losses, to execute in the lessee's name any titling and registration documents, or to endorse the lessee's name on any insurance settlement or premium rebate draft or check the proceeds of which are applicable to the lessee's obligations under the lease;
(8) The maturity of any part or all of the amount owing under the lease is accelerated where, following a default consisting solely of the failure to make timely payments, a lessee who has the right to redeem the lease makes timely payment of an amount sufficient to redeem the lease under § 14-2008(h) of this subtitle; or
Credits
Added by Acts 1995, c. 602, § 1, eff. Jan. 1, 1996.
MD Code, Commercial Law, § 14-2002, MD COML § 14-2002
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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