Home Table of Contents

§ 11-127.2. Lease intended as security; lease not intended as security

West's Annotated Code of MarylandTransportationEffective: April 9, 2013

West's Annotated Code of Maryland
Transportation
Title 11. Vehicle Laws--Definitions; General Provisions (Refs & Annos)
Subtitle 1. Definitions (Refs & Annos)
Effective: April 9, 2013
MD Code, Transportation, § 11-127.2
§ 11-127.2. Lease intended as security; lease not intended as security
Currentness
Lease intended as security
(a) “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 cost to the lessor of the leased property including, if applicable, any increase or markup by the lessor prior to consummation; or
B. If the value at consummation is not stated in the lease, 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.
Lease not intended as security
(b) “Lease not 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 may return the motor vehicle at the end of the lease term with no financial obligations other than payments required under, and disclosed in, the lease for excess wear and tear and excess mileage charges and for administration, disposition, and similar costs incurred at the end of the lease; and
(2) The lessee is provided the option to purchase the leased vehicle for:
(i) In the case of a new vehicle, a consideration in excess of:
1. 20 percent of the cost to the lessor of the leased property including, if applicable, any increase or markup by the lessor prior to consummation; or
2. If the value at consummation is not stated in the lease, 20 percent of the Monrone sticker price for the vehicle; or
(ii) In the case of a used vehicle, a consideration in excess of 20 percent 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.

Credits

Added as Transportation § 11-127.1 by Acts 1987, c. 577, § 1, eff. July 1, 1987. Amended by Acts 1988, c. 6, § 1, eff. Feb. 18, 1988; Acts 1995, c. 602, § 1, eff. Jan. 1, 1996. Renumbered as Transportation § 11-127.2 by Acts 1996, c. 652, § 1, eff. May 23, 1996. Renumbered as Transportation § 11-127.1 by Acts 2005, c. 25, § 4, eff. April 12, 2005. Renumbered as Transportation § 11-127.2 by Acts 2009, c. 390, § 1, eff. May 7, 2009. Amended by Acts 2013, c. 43, § 1, eff. April 9, 2013.
MD Code, Transportation, § 11-127.2, MD TRANS § 11-127.2
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.
End of Document