AB954,21,44 (b) Capitalized cost reduction, as defined in s. 429.104 (6).
AB954, s. 59 5Section 59. 422.201 (4) of the statutes is repealed.
AB954, s. 60 6Section 60. 422.201 (7) (intro.) and (a) of the statutes are amended to read:
AB954,21,107 422.201 (7) (intro.) Subject to classifications and differentiations the merchant
8may reasonably establish, the merchant may make the same finance charge on all
9amounts financed within a specified range. A finance charge so made does not violate
10sub. (2), or (3) or (4) as the case may be if:
AB954,21,1211 (a) When applied to the median amount within each range, it does not exceed
12the maximum permitted by sub. (2), or (3) or (4) as the case may be; and
AB954, s. 61 13Section 61. 422.201 (8), (9) and (12) of the statutes are amended to read:
AB954,21,2014 422.201 (8) That portion of the finance charge consisting of an amount equal
15to a discount of 5% or less of the stated price which is offered to induce payment in
16full within a stated period of time in connection with a sale for agricultural purposes
17or a sale of particular goods and services for which credit is not otherwise available
18from the merchant shall not be included in the finance charge for the purpose of
19determining the maximum rate of finance charge under sub. (2), or (3) or (4) with
20respect to a customer who does not pay in full within such time.
AB954,21,24 21(9) Notwithstanding sub. (2), or (3) or (4), a merchant may contract for and
22receive a minimum finance charge with respect to a transaction other than one
23pursuant to an open-end credit plan, of not more than $5 when the amount financed
24does not exceed $75, or $7.50 when the amount financed exceeds $75.
AB954,22,3
1(12) Except as provided in sub. (4), this This section does not apply to a
2consumer credit transaction primarily for an agricultural purpose if the transaction
3occurs on or after April 6, 1980.
AB954, s. 62 4Section 62. 422.201 (12m) of the statutes is renumbered 422.201 (12m) (intro.)
5and amended to read:
AB954,22,76 422.201 (12m) (intro.) This section does not apply to consumer any of the
7following:
AB954,22,10 8(b) Consumer credit sales of or consumer loans secured by a first lien on or
9equivalent security interest in mobile homes as defined in s. 218.10 (2), if the sales
10or loans are made on or after November 1, 1981.
AB954, s. 63 11Section 63. 422.201 (12m) (a) of the statutes is created to read:
AB954,22,1212 422.201 (12m) (a) Motor vehicle consumer leases.
AB954, s. 64 13Section 64. 422.202 (1) (e) of the statutes is created to read:
AB954,22,1714 422.202 (1) (e) With respect to a motor vehicle consumer lease, any reasonable
15fee or charge that, if disclosed in writing to the prospective lessee before execution
16of the motor vehicle consumer lease, is agreed upon by the lessor and lessee and that
17is not prohibited by chs. 421 to 427 and 429.
AB954, s. 65 18Section 65. 422.207 (1) of the statutes is amended to read:
AB954,23,619 422.207 (1) With respect to a consumer credit transaction the parties may, to
20the extent not prohibited by chs. 421 to 427 or 429, agree that the customer will
21perform certain duties with respect to preserving or insuring collateral or goods
22subject to a motor vehicle consumer lease,
if such duties are reasonable in relation
23to the risk of loss of or damage to the collateral or goods. If the customer fails to so
24perform the creditor may, if authorized by the agreement, pay for the performance
25of such duties on behalf of the customer. The amount paid may be added to the

1unpaid balance of the customer's obligation, if, in the absence of performance, the
2merchant has made all expenditures on behalf of the customer in good faith and in
3a commercially reasonable manner and except in the case of a transaction for an
4agricultural purpose where the collateral is perishable and threatens to decline
5speedily in value, the merchant has given the customer written notice of the
6nonperformance and reasonable opportunity after such notice to so perform.
AB954, s. 66 7Section 66. 422.207 (3) of the statutes is amended to read:
AB954,23,148 422.207 (3) A finance charge may be made for sums advanced pursuant to sub.
9(1) at a rate not exceeding the rate stated to the customer pursuant to the provisions
10on disclosure in subch. III, or if no disclosure is required then at the annual rate of
11finance charge assessed on that transaction. With respect to an open-end credit plan
12the amount of the advance may be added to the unpaid balance of the account and
13the merchant may make a finance charge not exceeding that permitted by s. 422.201.
14This subsection does not apply to a motor vehicle consumer lease.
AB954, s. 67 15Section 67. 422.208 of the statutes is amended to read:
AB954,23,21 16422.208 Right to prepay. Subject to s. 422.209 and, with respect to a motor
17vehicle consumer lease, s. 429.207
, the customer may prepay in full or in any part,
18at any time without penalty, the unpaid balance of any consumer credit transaction
19other than a transaction secured by a first lien mortgage or equivalent security
20interest on real estate with an original term of 10 years or more and on which the
21annual percentage rate disclosed pursuant to subch. III is 10% or less.
AB954, s. 68 22Section 68. 422.303 (3) (intro.) of the statutes is amended to read:
AB954,24,223 422.303 (3) (intro.) Except as provided in sub. subs. (3m) and (4), every writing
24evidencing the customer's obligation to pay under a consumer credit transaction,
25other than one pursuant to an open-end credit plan, shall contain immediately above

1or adjacent to the place for the signature of the customer, a clear, conspicuous,
2printed or typewritten notice in substantially the following language:
AB954, s. 69 3Section 69. 422.303 (3m) of the statutes is created to read:
AB954,24,74 422.303 (3m) Except as provided in sub. (4), every writing evidencing the
5customer's obligation to pay under a motor vehicle consumer lease shall contain
6immediately above or adjacent to the place for the signature of the customer, a clear,
7conspicuous, printed or typewritten notice in substantially the following language:
AB954,24,88 NOTICE TO LESSEE
AB954,24,129 (a) THIS IS A MOTOR VEHICLE CONSUMER LEASE. YOU HAVE NO
10OWNERSHIP RIGHTS IN THE VEHICLE UNLESS THIS LEASE CONTAINS A
11PURCHASE OPTION AND YOU EXERCISE YOUR OPTION TO PURCHASE THE
12VEHICLE.
AB954,24,1413 (b) DO NOT SIGN THIS LEASE BEFORE YOU READ IT, INCLUDING THE
14WRITING ON THE REVERSE SIDE.
AB954,24,1515 (c) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
AB954,24,1716 (d) EARLY TERMINATION OF THIS LEASE MAY REQUIRE YOU TO PAY
17A SUBSTANTIAL AMOUNT.
AB954,24,1918 (e) YOU ARE ENTITLED TO A COMPLETED COPY OF THIS LEASE WHEN
19YOU SIGN IT.
AB954, s. 70 20Section 70. 422.413 (1) of the statutes is amended to read:
AB954,24,2521 422.413 (1) Except as provided in subs. (2) and (2g), no term of a writing
22evidencing a consumer credit transaction may provide for any charges as a result of
23default by the customer other than reasonable expenses incurred in the disposition
24of collateral or goods subject to a motor vehicle consumer lease and such other
25charges as are specifically authorized by chs. 421 to 427 and 429.
AB954, s. 71
1Section 71. 422.417 (2) of the statutes is amended to read:
AB954,25,72 422.417 (2) With respect to a consumer lease, except as otherwise provided in
3s. 429.205 with respect to a motor vehicle consumer lease,
a lessor may not take a
4security interest in any property of owned or leased by the customer other than the
5leased goods to secure the lessor's obligations under the lease. This subsection does
6not prohibit a security interest in a cash security deposit for a consumer lease of
7motor vehicles or agricultural equipment.
AB954, s. 72 8Section 72. 424.201 (1) and (2) of the statutes are amended to read:
AB954,25,119 424.201 (1) Insurance issued as an isolated transaction on the part of the
10insurer not related to an agreement or plan for insuring customers of the creditor;
11or
AB954,25,13 12(2) Insurance indemnifying the creditor against loss due to the customer's
13default.; or
AB954, s. 73 14Section 73. 424.201 (3) of the statutes is created to read:
AB954,25,1715 424.201 (3) With respect to a motor vehicle consumer lease, a lessor's waiver
16of its contractual right to hold the lessee liable for any or all of the gap amount, as
17defined in s. 429.104 (12), if the waiver is granted without a separate charge.
AB954, s. 74 18Section 74. 425.106 (1) (intro.) of the statutes is amended to read:
AB954,25,2419 425.106 (1) (intro.) Except to the extent that the merchant has a valid security
20interest which is permitted by chs. 421 to 427 and 429 or has a lien under ch. 779 in
21such property, or where the transaction is for medical or legal services and there has
22been no finance charge actually imposed, the following property of the customer shall
23be exempt from levy, execution, sale, and other similar process in satisfaction of a
24judgment for an obligation arising from a consumer credit transaction:
AB954, s. 75 25Section 75. 425.107 (4) of the statutes is amended to read:
AB954,26,4
1425.107 (4) Any charge or practice expressly permitted by chs. 421 to 427 and
2429
is not in itself unconscionable but even though a practice or charge is authorized
3by chs. 421 to 427 and 429, the totality of a creditor's conduct may show that such
4practice or charge is part of an unconscionable course of conduct.
AB954, s. 76 5Section 76. Chapter 429 of the statutes is created to read:
AB954,26,86 Chapter 429
7 motor vehicle
8 consumer leases
AB954,26,109 Subchapter i
10 general provisions
AB954,26,12 11429.101 Title. This chapter may be cited as the Wisconsin motor vehicle
12consumer lease act.
AB954,26,17 13429.102 Applicable law. (1) Unless superseded by the particular provisions
14of this chapter, s. 218.01 and chs. 411 and 421 to 427 and the principles of law and
15equity, including the law relative to capacity to contract, principal and agent,
16estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other
17validating or invalidating cause supplement this chapter.
AB954,26,21 18(2) Unless superseded by the particular provisions of this chapter, parties to
19a motor vehicle consumer lease have all of the obligations, duties, rights and
20remedies provided in s. 218.01 and chs. 411 and 421 to 427 that apply to the
21transaction.
AB954,26,25 22429.103 Construction against implied repeal. This chapter being a
23general act intended as a unified coverage of its subject matter, no part of this chapter
24shall be construed to be impliedly repealed by subsequent legislation if such
25construction can reasonably be avoided.
AB954,27,1
1429.104 Definitions. In this chapter:
AB954,27,3 2(1) "Adjusted capitalized cost" means the amount computed by subtracting
3from capitalized cost any capitalized cost reduction.
AB954,27,6 4(2) "Average periodic depreciation" means the adjusted capitalized cost, after
5first subtracting the residual value, divided by the number of lease-payment periods
6or, for a single-payment lease, the number of months in the term of the lease.
AB954,27,9 7(3) "Average periodic lease charge" means the lease charge for the originally
8scheduled term of the consumer lease divided by the number of lease-payment
9periods or, for a single-payment lease, the number of months in the term of the lease.
AB954,27,10 10(4) "Base lease payment" means an amount determined as follows:
AB954,27,1311 (a) With respect to a single-payment lease, the product of the number of
12months in the term of the lease multiplied by the sum of the average periodic lease
13charge and the average periodic depreciation.
AB954,27,1514 (b) With respect to a lease other than a single-payment lease, the sum of the
15average periodic lease charge and the average periodic depreciation.
AB954,28,4 16(5) "Capitalized cost" means all costs capitalized in the consumer lease that,
17after subtracting the capitalized cost reduction, amortizes to the residual value of the
18depreciation portion of the periodic lease payments over the unexpired term of the
19lease or, for a single-payment lease, the single payment. These costs may include
20taxes; fees for registration, license, acquisition, administration and assignment;
21other fees; and charges for insurance, for a waiver of the contractual obligation to pay
22the gap amount, for accessories and their installation, for other services and benefits
23incidental to the consumer lease, and for delivering, servicing, repairing or
24improving the vehicle. With respect to a vehicle or other property traded in
25connection with a consumer lease, the term includes the outstanding unpaid balance

1of the amount financed under a consumer loan, as defined in s. 421.301 (12), or a
2retail instalment contract, as defined in s. 218.01 (1) (t), or the unpaid balance of any
3early termination costs under a lease or other obligation of the lessee. The term does
4not include any lease charge.
AB954,28,9 5(6) "Capitalized cost reduction" means the sum, at the time of inception of the
6consumer lease, of any payments made by cash, check, rebates or the like that
7constitute a downpayment made by the lessee and the amount credited the lessor for
8any trade-in. The term does not include any base lease payments due at the
9inception of the consumer lease.
AB954,28,12 10(7) "Conspicuous" means that the term or clause is so written as to be
11distinguished from other terms or clauses by type size or in some other manner. The
12term includes any writing in at least 10-point boldface type.
AB954,28,19 13(9) "Consumer lease" or "lease" means a lease entered into in this state that
14transfers the right of possession and use by a natural person of a vehicle primarily
15for a personal, family, household or agricultural purpose, for a period of time
16exceeding 4 months, if the total lease obligation, excluding any option to purchase
17or otherwise become owner of the vehicle at the expiration of the consumer lease,
18does not exceed $25,000. The term does not include a credit sale, as defined under
1912 CFR 226.2 (a) (16).
AB954,28,21 20(10) "Early termination" means termination of a consumer lease before the
21termination date set forth in the consumer lease.
AB954,28,23 22(11) "Federal consumer leasing act" means the federal consumer leasing act,
2315 USC 1667 et seq., and regulations issued under that act.
AB954,29,8 24(12) "Gap amount" means the difference between the amount specified in the
25consumer lease to be paid to the lessor by the lessee in the event of total loss or

1destruction of the leased vehicle prior to expiration of the lease by theft, physical
2damage, or other occurrence specified in the lease, and the actual cash value or
3portion thereof received by the lessor from insurance proceeds or from any other
4person on account of the total loss or destruction of the vehicle. The term does not
5include any deductible amount applicable to any insurance policy maintained by the
6lessee, any past-due payments owed by the lessee at the time of receipt by the lessor
7of the actual cash value or portion thereof from insurance proceeds or from any other
8person, or any other amount due under the lease resulting from default by the lessee.
AB954,29,11 9(13) "Gap protection" means a provision in a consumer lease under which the
10lessor agrees, for a charge, to waive the gap amount or provide that another person
11shall be liable for the gap amount.
AB954,29,14 12(14) "Group credit insurance" means group credit life insurance, group credit
13accident insurance, group credit accident and health insurance, group disability
14insurance or group credit unemployment insurance.
AB954,29,18 15(15) "Holder" means, with respect to a consumer lease, the lessor and, upon
16assignment of the lease, the assignee for the period of assignment. The term does
17not include a pledgee under the consumer lease or the owner or beneficiary of an
18interest in a trust that owns consumer leases.
AB954,29,21 19(16) "Lease charge" means the sum of all charges, calculated by a lessor on any
20basis, payable by the lessee for the privilege of making the scheduled lease payments
21under a consumer lease. The term does not include capitalized cost.
AB954,29,23 22(17) "Lessee" means a natural person who leases a vehicle from a lessor under
23a consumer lease.
AB954,29,25 24(18) "Lessor" means a person regularly engaged in the business of leasing or
25selling vehicles who leases a vehicle to a lessee under a consumer lease.
AB954,30,1
1(19) "Motor vehicle" has the meaning given in s. 218.01 (1) (m).
AB954,30,3 2(20) "Periodic" means weekly, monthly, quarterly or any other period of time
3specified in a consumer lease.
AB954,30,7 4(22) "Realized value" means, with respect to a leased vehicle that has been
5appraised under s. 429.206, the fair market value of the vehicle or an amount agreed
6upon between the lessor and the lessee and, with respect to any other leased vehicle,
7means the greatest of the following:
AB954,30,108 (a) The price obtained by the holder for disposition of the vehicle, after
9subtracting all actual and reasonable expenses incurred by the lessor in connection
10with disposition of the vehicle.
AB954,30,1211 (b) Insurance proceeds received by the holder in the event of the total loss or
12destruction of the vehicle.
AB954,30,1413 (c) The highest bona fide offer received by the holder for disposition of the
14vehicle.
AB954,30,21 15(23) "Renegotiation" means the replacement of an existing consumer lease by
16a new consumer lease between the same parties, including an assignee of the lessor.
17The term does not include a deferral or extension of any periodic lease payments or
18portions thereof not exceeding 6 months in the aggregate, a replacement of a
19consumer lease involving a court proceeding or the settlement of a dispute, or any
20other action that does not constitute a renegotiation under the federal consumer
21leasing act.
AB954,30,23 22(24) "Residual value" means the estimated value of the leased vehicle at the
23expiration of the lease.
AB954,30,25 24(25) "Single-payment lease" means a consumer lease that requires only one
25payment, to be paid at the time of commencement of the lease.
AB954,31,3
1Subchapter II
2 Disclosures; limitations on
3 agreements and practices
AB954,31,7 4429.201 Prelease availability of consumer lease application form. A
5lessor shall, upon request of a prospective lessee, make readily available a blank
6sample of its current consumer lease application form for examination by the
7prospective lessee before execution of the consumer lease.
AB954,31,18 8429.202 Advance payment or trade-in; refund or return. (1) If a
9prospective lessee has made an advance payment or surrendered possession of a
10vehicle to a prospective lessor as a trade-in pending the execution of a consumer
11lease, the prospective lessee shall have the right, if the application for the consumer
12lease is not approved, to receive a prompt refund of the advance payment or, if
13applicable, to have the trade-in vehicle returned to him or her as promptly as
14possible. If a prospective lessor takes possession of a trade-in vehicle under this
15subsection, the prospective lessor may not sell, offer for sale, lease, transfer or
16otherwise dispose of the vehicle in any manner until execution of the consumer lease
17or, except for return of the vehicle to the prospective lessee, disapproval of the
18consumer lease application.
AB954,31,23 19(2) This section does not apply to the sale of a vehicle by a prospective lessee
20to a prospective lessor under a separate contract of sale if the contract of sale is
21executed prior to execution of the consumer lease between the parties, gives the date
22of sale and is signed by both parties. Any contract of sale under this subsection shall
23provide for all of the following:
AB954,32,3
1(a) That the contract price establishes the value of the vehicle for purposes of
2determining the capitalized cost reduction or, if the parties fail to execute a consumer
3lease, the amount due the prospective lessee for the vehicle.
AB954,32,74 (b) That the prospective lessee agrees to leave the contract price on deposit with
5the prospective lessor pending the execution of a consumer lease between the parties
6with respect to a vehicle to be ordered from a manufacturer, including a vehicle not
7yet in production as of the date of sale.
AB954,32,118 (c) That the prospective lessee shall be entitled to payment of the contract price
9from the prospective lessor no later than 75 days after the date of sale, unless the
10parties have executed a consumer lease or the prospective lessee has already
11received such payment.
AB954,32,13 12429.203 Requirements of a consumer lease. (1) A consumer lease shall
13be in writing and signed by the lessor and the lessee.
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