429.104 (3) “Average periodic lease rent charge" means the lease rent charge for the scheduled term of the consumer lease divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.
48,6
Section 6
. 429.104 (3m) (intro.) of the statutes is amended to read:
429.104 (3m) (intro.) “Balance subject to a lease rent charge" means:
48,7
Section 7
. 429.104 (3m) (a) of the statutes is amended to read:
429.104 (3m) (a) In the case of a lease other than a single-payment lease, the amount calculated by subtracting from the adjusted capitalized cost the sum of the first base lease periodic payment and all depreciation amounts accrued during any preceding payment periods.
48,8
Section 8
. 429.104 (3m) (b) of the statutes is amended to read:
429.104 (3m) (b) In the case of a single-payment lease, the amount calculated by subtracting the total lease rent charge from the sum of the residual value and all lease rent charges accrued during any preceding computational periods.
48,9
Section 9
. 429.104 (4) (intro.) of the statutes is amended to read:
429.104 (4) (intro.) “Base lease periodic payment" means an amount determined as follows:
48,10
Section 10
. 429.104 (4) (a) of the statutes is amended to read:
429.104 (4) (a) With respect to a single-payment lease, the product of the number of months in the scheduled term of the lease multiplied by the sum of the average periodic lease rent charge and the average periodic depreciation.
48,11
Section 11
. 429.104 (4) (b) of the statutes is amended to read:
429.104 (4) (b) With respect to a lease other than a single-payment lease, the sum of the average periodic lease rent charge and the average periodic depreciation.
48,12
Section 12
. 429.104 (5) of the statutes is renumbered 429.104 (13m) and amended to read:
429.104 (13m) “Capitalized Gross capitalized cost" means the sum of all amounts capitalized in the consumer lease that, after subtracting the capitalized cost reduction, amortizes to the residual value by the depreciation portion of the periodic lease payments over the scheduled term of the lease or, for a single-payment lease, the single payment. These amounts may include taxes; fees for registration, license, acquisition, administration and assignment; other fees; charges for insurance, service contracts and extended warranties; and charges for a waiver of the contractual obligation to pay the gap amount, for accessories and their installation, for other services and benefits incidental to the consumer lease, and for delivering, servicing, repairing or improving the vehicle. With respect to a vehicle or other property traded in connection with a consumer lease, the term may include the outstanding unpaid balance of the amount financed under a consumer loan, as defined in s. 421.301 (12), or a retail instalment contract, as defined in s. 218.01 (1) (t), or the unpaid balance of any early termination costs under a lease or other obligation of the lessee. The term does not include any lease rent charge.
48,13
Section 13
. 429.104 (6) of the statutes is amended to read:
429.104 (6) “Capitalized cost reduction" means the sum, at the time of inception of the consumer lease, of any payments made by cash, check, rebates or the like that constitute a downpayment made by the lessee and the net amount credited by the lessor for any trade-in. The term does not include any base lease periodic payments due at the inception of the consumer lease.
48,14
Section 14
. 429.104 (16) of the statutes is renumbered 429.104 (23m) and amended to read:
429.104 (23m) “Lease
Rent charge" means the sum of all charges payable by the lessee for the privilege of making the scheduled lease payments under a consumer lease. The term does not include gross capitalized cost.
48,15
Section 15
. 429.104 (24) of the statutes is amended to read:
429.104 (24) “Residual value" means the estimated value of the leased vehicle at the expiration of the lease term that is used in the consumer lease to determine the depreciation portion of the base lease periodic payment.
48,16
Section 16
. 429.203 (2m) (form) (d) of the statutes is repealed.
48,17
Section 17
. 429.203 (2m) (form) (e) of the statutes is renumbered 429.203 (2m) (form) (d).
48,18
Section 18
. 429.203 (3) (a) of the statutes is amended to read:
429.203 (3) (a) The gross capitalized cost, using the term “gross capitalized cost", and an explanation of the term in substantially the following language: “The gross capitalized cost is the agreed-upon amount determined at the inception of the consumer lease for all items and services included in the lease other than the charges you pay for the privilege of making the scheduled lease payments value of the vehicle ($.... [insert the agreed-upon value of the vehicle]) and any items that you pay over the lease term (such as service contracts, insurance and any outstanding prior credit or lease balance)."
48,19
Section 19
. 429.203 (3) (b) of the statutes is amended to read:
429.203 (3) (b) Any capitalized cost reduction, using the term “capitalized cost reduction", and an explanation of the term in substantially the following language: “The capitalized cost reduction is any cash, check, rebate or the like and, if applicable, net trade-in allowance the amount of any net trade-in allowance, rebate, noncash credit or cash that you pay that reduces the gross capitalized cost."
48,20
Section 20
. 429.203 (3) (c) of the statutes is amended to read:
429.203 (3) (c) The adjusted capitalized cost, using the term “adjusted capitalized cost", and an explanation of the term, as applicable, in substantially the following language: “The adjusted capitalized cost is the agreed-upon amount that serves as the basis for determining the base lease payment. If you are not in default on the consumer lease, this amount (plus any applicable early termination charges) determines your maximum early termination obligation is used in calculating your base periodic payment."
48,21
Section 21
. 429.203 (3) (d) of the statutes is amended to read:
429.203 (3) (d) The residual value of the leased vehicle, using the term “residual value", and an explanation of the term in substantially the following language: “The residual value is the estimated value of the leased vehicle at the end of the lease term that is used in determining the depreciation portion of the base lease payment. Your purchase option price, if any, may be a different amount value of the vehicle at the end of the lease used in calculating your base periodic payment."
48,22
Section 22
. 429.203 (3) (e) 1. of the statutes is amended to read:
429.203 (3) (e) 1. With respect to a single-payment lease, a statement of the lease rent charge included in the single payment and a separate statement of the depreciation portion of the single payment.
48,23
Section 23
. 429.203 (3) (e) 2. of the statutes is amended to read:
429.203 (3) (e) 2. With respect to a lease other than a single-payment lease, a statement of the lease
rent charge included in the total of the periodic payments and a separate statement of the depreciation portion of the total of the periodic payments.
48,24
Section 24
. 429.203 (3) (f) of the statutes is repealed.
48,24m
Section 24m. 429.203 (3) (fm) of the statutes is created to read:
429.203 (3) (fm) A statement on early termination of the consumer lease in substantially the following language: “Early termination. You may have to pay a substantial charge if you end this consumer lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater the charge is likely to be."
48,25
Section 25
. 429.203 (6) (c) of the statutes is amended to read:
429.203 (6) (c) If the lessee does not purchase, maintain in force and provide satisfactory proof of insurance against loss of or damage to the leased vehicle and against liability arising out of the ownership, maintenance or use of the leased vehicle, the lessor may purchase motor vehicle insurance to protect the lessor's interest in the leased vehicle and against the lessor's liability arising out of the ownership, maintenance or use of the leased vehicle. The lessor may include the cost of such insurance in the lease rent charge.
48,26
Section 26
. 429.207 (2) (f) 1. of the statutes is amended to read:
429.207 (2) (f) 1. The sum of the balance subject to a lease rent charge and the
lease rent charge earned in advance for the computational period in which the early termination occurs, calculated in accordance with the constant yield method or any other generally accepted accounting principle.
48,27
Section 27
. 429.207 (2) (f) 2. of the statutes is amended to read:
429.207 (2) (f) 2. An amount determined in accordance with generally accepted actuarial principles under which the lease rent charge is calculated on the adjusted capitalized cost for the time outstanding.
48,28g
Section 28g. 632.32 (2) (b) of the statutes is renumbered 632.32 (2) (b) (intro.) and amended to read:
632.32 (2) (b) (intro.) “Motor vehicle handler" means a any of the following:
1. A motor vehicle sales agency,
dealer, as defined in s. 218.01 (1) (n).
3. A repair shop, service station, storage garage or public parking place.
48,28j
Section 28j. 632.32 (2) (b) 2. of the statutes is created to read:
632.32 (2) (b) 2. A lessor, as defined in s. 344.51 (1g) (a), or a rental company, as defined in s. 344.51 (1g) (c).
48,29
Section 29
.
Initial applicability.
(1) (a) The treatment of sections 218.01 (1) (ar), (2) (dr), (3) (a) 18. and (6x) (e), 429.104 (1), (3), (3m) (intro.), (a) and (b), (4) (intro.), (a) and (b), (5), (6), (16) and (24), 429.203 (2m) (form) (d) and (e), (3) (a), (b), (c), (d), (e) 1. and 2. and (f) and (6) (c) and 429.207 (2) (f) 1. and 2. of the statutes first applies to leases entered into on the effective date of this paragraph.
(b) The treatment of section 344.51 (1), (1g) (a) and (c), (2) and (4) of the statutes first applies to rentals and leases entered into on the effective date of this paragraph.
(2) The renumbering and amendment of section 632.32 (2) (b) of the statutes and the creation of section 632.32 (2) (b) 2. of the statutes first apply to policies issued or renewed on the effective date of this subsection.
