AB954-ASA1,39,64 2. With respect to a lease other than a single-payment lease, the sum of the
5total of the periodic payments, the capitalized cost reduction and the total of any
6other nonrefundable payments due at execution of the consumer lease.
AB954-ASA1,39,97 (g) The standards to be applied by the holder in determining the excess wear
8and damage to the leased vehicle for which the lessee shall be held liable. These
9standards shall comply with the federal consumer leasing act.
AB954-ASA1,39,1010 (h) Any disclosure required under sub. (2m).
AB954-ASA1,39,14 11(4) The consumer lease shall contain the names of the lessor and the lessee; the
12place of business of the lessor; the place of business or residence of the lessee, as
13specified by the lessee; and the year, make, model and, if known, serial or
14identification number of the motor vehicle.
AB954-ASA1,39,18 15(5) The lessor shall deliver to the lessee a completed copy of the consumer lease
16signed by both parties. Any acknowledgement of delivery of a copy of the consumer
17lease by the lessee shall be conspicuous and appear above the space reserved for the
18signature of the lessee.
AB954-ASA1,39,21 19(6) (a) Any motor vehicle insurance policy covering the leased vehicle for which
20a charge is included in the consumer lease shall be issued by an insurer authorized
21to transact business in this state.
AB954-ASA1,39,2322 (b) 1. The lessor shall advise the lessee in writing at the time the lease is entered
23into that the lessee has the right to do any of the following:
AB954-ASA1,40,224 a. Purchase a motor vehicle insurance policy covering the loss of or damage to
25the leased vehicle and liability arising out of the ownership, maintenance or use of

1the leased vehicle from any insurer authorized to issue motor vehicle insurance
2policies in this state and through any agent currently licensed under ch. 628.
AB954-ASA1,40,53 b. Substitute for an existing motor vehicle insurance policy any other policy
4with similar coverage issued by any other insurer or sold by any other agent meeting
5the qualifications specified in subd. 1. a. at any time during the lease term.
AB954-ASA1,40,86 2. If the lessee purchases a motor vehicle insurance policy under subd. 1., the
7lessor may agree to pay the premiums and to amortize the cost of the premiums over
8the lease term, or over such portion of the lease term as the parties may agree.
AB954-ASA1,40,129 3. If the lessee provides to the lessor satisfactory proof that the lessee has
10purchased a motor vehicle insurance policy that includes the coverages and limits
11required by the lease, the lessor may not charge the lessee for insurance covering the
12leased vehicle except as the parties have agreed under subd. 2.
AB954-ASA1,40,1513 4. The lessor may require the lessee to have the lessor included on the policy
14as an additional insured and loss payee and to provide the lessor with a copy of the
15policy.
AB954-ASA1,40,2216 (c) If the lessee does not purchase, maintain in force and provide satisfactory
17proof of insurance against loss of or damage to the leased vehicle and against liability
18arising out of the ownership, maintenance or use of the leased vehicle, the lessor may
19purchase motor vehicle insurance to protect the lessor's interest in the leased vehicle
20and against the lessor's liability arising out of the ownership, maintenance or use of
21the leased vehicle. The lessor may include the cost of such insurance in the lease
22charge.
AB954-ASA1,41,6 23(7) A holder may purchase or sell, or otherwise acquire or transfer, an interest
24in a consumer lease or a motor vehicle subject to a consumer lease, on such terms and
25conditions as may be mutually agreed upon by the parties to the sale, transfer or

1acquisition. No filing of the sale, transfer or acquisition, or any requirement that the
2holder be deprived of any payments due with respect to the consumer lease or, if
3subject to replevin or otherwise returned to the holder, the motor vehicle, shall be
4necessary to the validity of any written bill of sale or other instrument of transfer of
5the interest in a consumer lease as against creditors, subsequent purchasers,
6pledges, encumbrancers, mortgagees, successors or assigns.
AB954-ASA1,41,10 7(8) (a) Upon written request from a lessee, the holder shall give or forward to
8the lessee a written statement that specifies, without regard to realized value, the
9projected obligation that the lessee will incur in the event of early termination of the
10consumer lease.
AB954-ASA1,41,1511 (b) No charge may be imposed for the preparation of one statement under par.
12(a) in a 12-month period. A holder may impose a reasonable charge, not exceeding
13$20 per statement, for the preparation of a 2nd or subsequent statement under par.
14(a) in a 12-month period, if the charge has been disclosed to the lessee either orally
15or in writing prior to preparation of a statement under this paragraph.
AB954-ASA1,41,17 16(9) A holder is not required to pay interest on any security deposit under the
17consumer lease.
AB954-ASA1,41,20 18(10) Any provision of a consumer lease in violation of this chapter is void and
19unenforceable, but shall not affect the validity of any other provision of the consumer
20lease.
AB954-ASA1,41,25 21429.204 Gap amount; notice; waiver. (1) If a consumer lease provides that
22the lessee is responsible for any or all of the gap amount, the consumer lease shall
23conspicuously disclose this fact, using the term "gap amount". The acceptance of a
24consumer lease may not be conditioned upon the lessee's agreement to gap
25protection.
AB954-ASA1,42,9
1(2) A lessor may waive any right under the consumer lease to hold a lessee
2liable for any or all of the gap amount. The consumer lease may contain a separate
3charge for the waiver under this subsection if the charge is conspicuously disclosed
4to the lessee, and the consumer lease also contains a conspicuous notice stating that,
5for such separate charge, the lessor agrees to waive such contractual right and that,
6in lieu of such separate charge, the lessee may purchase insurance from an insurer
7authorized to transact business in this state insuring the lessee for any or all of the
8gap amount. A waiver under this subsection without a separate charge may not be
9considered insurance on property.
AB954-ASA1,42,11 10(3) A lessor's waiver under sub. (2) may be conditioned upon payment of any
11of the following:
AB954-ASA1,42,1212 (a) The separate charge, if any, for the waiver.
AB954-ASA1,42,1513 (b) All amounts due under the consumer lease as of the date of total loss or
14destruction of the leased vehicle or, if specified in the consumer lease, as of the date
15of receipt by the lessor of insurance proceeds.
AB954-ASA1,42,1816 (c) An amount from the lessee equal to any deductible amount under an
17applicable insurance policy and any other subtractions made by the insurance
18company under the insurance policy.
AB954-ASA1,42,2119 (d) Insurance proceeds from the applicable insurance policy required under the
20consumer lease or the equivalent amount with respect to the value of the motor
21vehicle.
AB954-ASA1,43,2 22429.205 Security interest. (1) No consumer lease, or any other document
23executed by a lessee in connection with a consumer lease, shall create a security
24interest in any real or personal property of the lessee to secure payment of any

1obligations assumed by the lessee under the consumer lease. This subsection does
2not apply to any of the following:
AB954-ASA1,43,43 (a) The taking of a security deposit, advance lease payment or other
4prepayment by cash, check, credit card or other device.
AB954-ASA1,43,55 (b) Any right of setoff.
AB954-ASA1,43,96 (c) Any security interest in the leased vehicle or in any proceeds, refunds for
7cancellation or any other rights of the lessee with respect to the consumer lease or
8the leased vehicle, including any insurance contracts, gap protection contracts,
9repair contracts and extended warranty or maintenance service contracts.
AB954-ASA1,43,11 10(2) Any security interest taken in violation of this section is void and
11unenforceable, but shall not otherwise affect the validity of the consumer lease.
AB954-ASA1,43,15 12429.206 Determination of realized value upon early termination. If a
13consumer lease is terminated before the expiration date set forth in the lease, the
14realized value of the motor vehicle leased under the consumer lease shall be
15determined as follows:
AB954-ASA1,43,17 16(1) If the lessee and the lessor mutually agree upon the motor vehicle's realized
17value, the realized value is the mutually agreed-upon amount.
AB954-ASA1,43,23 18(2) If there is a total loss or destruction of the vehicle occasioned by its theft,
19physical damage or other occurrence specified in the consumer lease and no amount
20is agreed upon under sub. (1), the realized value equals the sum of any insurance
21proceeds received by the holder under an applicable insurance policy required under
22the consumer lease and any amounts received by the holder from any other party in
23payment for the loss or destruction of the leased vehicle.
AB954-ASA1,44,7 24(3) If the realized value has not been determined under sub. (1) or (2) and an
25appraisal is obtained under this subsection, the realized value is the amount

1established by the appraisal. An appraisal may be obtained under this subsection
2if, within 7 business days of the early termination of the consumer lease, a lessee who
3is not in default obtains at his or her own expense a professional appraisal of the
4current wholesale value of the vehicle by an appraiser agreed to by the holder, with
5such agreement not to be unreasonably withheld by the holder. An appraisal under
6this subsection is final and binding and establishes the realized value for purposes
7of determining the liability of the lessee under the consumer lease.
AB954-ASA1,44,9 8(4) If the realized value has not been determined under sub. (1), (2) or (3), the
9realized value equals the greater of the following:
AB954-ASA1,44,1210 (a) The price obtained by the holder for the commercially reasonable
11disposition of the motor vehicle, after subtracting all actual and reasonable expenses
12incurred by the lessor in connection with the disposition of the vehicle.
AB954-ASA1,44,1413 (b) The highest bona fide offer received by the holder for the commercially
14reasonable disposition of the motor vehicle.
AB954-ASA1,44,16 15429.207 Restrictions on early termination obligation. (1) The lessee has
16the right to terminate the consumer lease at any time.
AB954-ASA1,44,20 17(2) If a consumer lease is terminated before the expiration date set forth in the
18consumer lease and no applicable option to purchase is exercised by the lessee, the
19early termination obligation of the lessee may not exceed an amount equal to the sum
20of the following amounts:
AB954-ASA1,44,2221 (a) Any unpaid lease payments that have accrued as of the date of termination
22of the consumer lease.
AB954-ASA1,44,2523 (b) Any other amounts unpaid by the lessee, other than excess mileage charges,
24arising under the terms of the consumer lease or not prohibited by this chapter or chs.
25421 to 427.
AB954-ASA1,45,2
1(c) Any official fees and taxes imposed in connection with termination of the
2consumer lease.
AB954-ASA1,45,53 (d) The amount set forth in the consumer lease as a disposition or other early
4termination fee, not to exceed the average payment allocable to a monthly period
5under the consumer lease.
AB954-ASA1,45,86 (e) The reasonable costs of retaking, storing, preparing for sale and selling the
7motor vehicle, except that a cost may not be imposed under this paragraph if, in the
8event of a default, the cost could not be charged under s. 422.413.
AB954-ASA1,45,109 (f) Any positive amount determined by subtracting the realized value from any
10of the following:
AB954-ASA1,45,1411 1. The sum of the balance subject to a lease charge and the lease charge earned
12in advance for the computational period in which the early termination occurs,
13calculated in accordance with the constant yield method or any other generally
14accepted accounting principle.
AB954-ASA1,45,1715 2. An amount determined in accordance with generally accepted actuarial
16principles under which the lease charge is calculated on the adjusted capitalized cost
17for the time outstanding.
AB954-ASA1,45,22 18(3) A holder may credit against the balance of the lessee's early termination
19obligation any refundable security deposit or advance lease payments held by the
20holder. The excess of any refundable security deposit or advance lease payment over
21the amount of the lessee's early termination obligation shall be promptly returned
22to the lessee.
AB954-ASA1,46,2 23(4) This section does not limit or restrict the manner of calculating the lessee's
24early termination obligation, if such obligation does not exceed the amount
25calculated under sub. (2). Such manner may include calculation of the unamortized

1capitalized cost, or the discounted present value of remaining lease payments,
2multiples of monthly lease payments or payments on another periodic basis.
AB954-ASA1,46,7 3429.208 Assessment of excess wear and damage. (1) (a) Except as
4provided in par. (b), a holder shall, upon return of a leased vehicle, conduct an
5inspection to determine excess wear and damage to the leased vehicle for which the
6lessee may be held liable. A holder may not prohibit the lessee from being present
7at such inspection.
AB954-ASA1,46,108 (b) If a lessee exercises an option to purchase in the consumer lease, the holder
9may not demand, collect or receive a charge for excess wear and damage to the leased
10vehicle and is not required to conduct the inspection under par. (a).
AB954-ASA1,46,12 11(2) For any inspection at or after the return of a leased vehicle, a holder shall
12do all of the following not later than 50 days after return of the vehicle:
AB954-ASA1,46,1413 (b) Provide to the lessee an itemized bill meeting the requirements under sub.
14(3).
AB954-ASA1,46,2415 (c) Provide to the lessee a statement in substantially the following language:
16"You are being asked to pay this amount for excess wear and damage to the leased
17vehicle. If you do not agree with this amount and wish to preserve valuable rights,
18you must obtain and deliver to us, within 7 days after hand delivery or 9 days after
19mailing of this bill, an itemized inspection report and estimate of the cost of repairing
20such excess wear and damage from an appraiser agreed to by us and, if your lease
21has ended, payment of any charges due under the inspection you obtained. If you
22properly obtain and deliver such appraisal and tender any amounts due, such
23appraisal shall be binding on the holder. If you fail to do so, the holder's inspection
24shall be conclusive."
AB954-ASA1,47,5
1(d) For the purpose of obtaining a counter-inspection under sub. (5), allow the
2lessee access to the motor vehicle, at a reasonable time and place designated by the
3holder, for the applicable time period specified in the statement under par. (c). A
4holder is not required to deliver the motor vehicle to, or produce the motor vehicle
5at, a place designated by the lessee for the purpose of the counter-inspection.
AB954-ASA1,47,13 6(3) (a) The itemized bill specified in sub. (2) (b) shall be based on the inspection
7for excess wear and damage to the leased vehicle, and shall consist of a listing of
8items of excess wear and damage, together with a charge for each item. The itemized
9bill may be comprised of separate documents delivered or mailed separately, and may
10include identified charges for other amounts due under the consumer lease, such as
11excess mileage charges. Acknowledgement of receipt of an itemized bill by a lessee
12is not an admission by the lessee of the existence, nature, obligation to pay or amount
13of any item of excess wear and damage specified in an itemized bill.
AB954-ASA1,47,1514 (b) A holder is not required to provide to the lessee an itemized bill under sub.
15(2) with respect to a counter-inspection under sub. (5).
AB954-ASA1,47,23 16(4) (a) If a lessee is required under the consumer lease, or given the option by
17the lessor, to have a pretermination inspection by the holder of the leased vehicle for
18excess wear and damage, the holder shall provide at least 15 days' notice of such
19inspection to the lessee. A pretermination inspection under this paragraph may not
20be earlier than 15 days before the termination date set forth in the consumer lease.
21The notice under this paragraph shall specify that the holder's inspection after the
22termination of the lease shall be conclusive unless the lessee obtains a
23counter-inspection under sub. (5).
AB954-ASA1,48,924 (b) A pretermination inspection under par. (a) shall be reasonable as to time
25and place. In addition to the statement under sub. (2) (c), any itemized bill of excess

1wear and damage prepared under par. (a) shall include a statement in substantially
2the following language: "If this inspection report was prepared prior to the
3termination date of the consumer lease, you may avoid any excess wear and damage
4charges by having such items satisfactorily repaired prior to the return of the vehicle.
5The holder may inspect the vehicle at or after its return and may seek additional
6charges for excess wear and damage only by written notice to you, and only for excess
7wear and damage incurred after the date of that inspection. Any charges for excess
8wear and damage under this inspection or your own inspection shall be due when the
9lease terminates."
AB954-ASA1,48,13 10(5) (a) A lessee may, at his or her own expense, obtain a counter-inspection for
11excess wear and damage to the leased vehicle, within the applicable time period
12specified in the statement under sub. (2) (c). A counter-inspection is not valid under
13this section unless it satisfies all of the following requirements:
AB954-ASA1,48,1514 1. Is conducted by an inspector agreed to by the holder, with such agreement
15not to be unreasonably withheld by the holder.
AB954-ASA1,48,1816 2. Is in writing in a form provided by, or acceptable to, the holder, listing any
17items of excess wear and damage to the leased vehicle and, according to standards
18set forth in the consumer lease, the estimated cost of repair of such items.
AB954-ASA1,48,1919 3. Is delivered to the holder within the applicable time period.
AB954-ASA1,48,2220 4. If conducted after the leased vehicle is returned to the lessee, is accompanied
21by payment of the amount of such excess wear and damage charges listed on the
22counter-inspection.
AB954-ASA1,48,2523 (b) Absent a mathematical mistake or other obvious error, a holder shall accept
24the counter-inspection as conclusive of the lessee's excess wear and damage
25obligations under the consumer lease.
AB954-ASA1,49,7
1(c) The total amount of the excess wear and damage charges specified in a
2counter-inspection under par. (a) may not be increased at or after the termination
3of the lease, except to increase the lessee's excess wear and damage obligation to the
4extent that any excess wear and damage was obscured or concealed or is reasonably
5believed by the holder to have occurred after such inspection. Any increase under
6this paragraph is not valid unless the holder gives the lessee another itemized bill
7and statement meeting the requirements of subs. (2) and (3).
AB954-ASA1,49,12 8(6) A lessee shall not be in default on the consumer lease for failing to obtain
9a pretermination inspection or counter-inspection under this section,
10notwithstanding any contrary provision of the consumer lease. If a lessee does not
11obtain a pretermination inspection or counter-inspection, the itemized bill with
12respect to the inspection under sub. (1) shall be conclusive.
AB954-ASA1,49,17 13(7) (a) A holder may not demand, receive or collect a charge for excess wear and
14damage to the leased vehicle unless the holder substantially complies with this
15section. The exclusive penalty for failure to substantially comply with this section
16is a waiver of the right to collect all contested excess wear and damage charges from
17the lessee.
AB954-ASA1,49,1918 (b) A holder is not required to send any notice under this section if the holder
19does not wish to demand, receive or collect any excess wear and damage charges.
AB954-ASA1,50,220 (c) Nothing in this section shall limit a lessee's obligation for excess mileage
21charges or prohibit any agreement between the lessee and the holder relating to
22excess wear and damage, if the agreement does not conflict with any of the lessee's
23rights under this section, or limit a lessee's liability to the holder for odometer
24tampering or for obscured or concealed structural or safety-related damage

1discovered by the holder after the return of the motor vehicle or the receipt of an
2itemized bill by the lessee.
AB954-ASA1,50,4 3(8) Except for sub. (1) (b), this section applies only to leased vehicles that are
4returned to an authorized representative, who is located in this state, of the holder.
AB954-ASA1,50,8 5429.209 Renegotiations and extensions. (1) All of the disclosure
6requirements specified in s. 429.203 apply to the renegotiation of a consumer lease.
7A renegotiation of a consumer lease does not create a warranty or subject the
8transaction to any laws of this state relating to the sale of used motor vehicles.
AB954-ASA1,50,10 9(2) The disclosure requirements specified in s. 429.203 do not apply to any
10extension of a consumer lease not exceeding 6 months in the aggregate.
AB954-ASA1,50,1211 subchapter iii
12 penalties and remedies
AB954-ASA1,50,15 13429.301 Penalties and remedies. (1) Except as provided in s. 429.208 (7)
14(a), a person who commits a violation of this chapter is liable to the lessee in an
15amount equal to the sum of the following amounts:
AB954-ASA1,50,1616 (a) One hundred dollars.
AB954-ASA1,50,1817 (b) The actual damages, including any incidental and consequential damages,
18sustained by the lessee by reason of the violation.
AB954-ASA1,50,2019 (c) Reasonable costs, expenses and attorney fees, as determined under s.
20425.308.
AB954-ASA1,50,23 21(2) If a party to a consumer lease recovers damages or penalties under this
22chapter for an act or omission, the party may not recover any damages or penalties
23for the same act or omission under s. 218.01 or chs. 411 and 421 to 427.
AB954-ASA1, s. 95 24Section 95. Initial applicability.
AB954-ASA1,51,2
1(1) This act first applies to leases entered into on the effective date of this
2subsection.
AB954-ASA1, s. 96 3Section 96. Effective date.
AB954-ASA1,51,54 (1) This act takes effect on the first day of the 5th month beginning after
5publication.
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