N.Y. Personal Property Law 334 – Payment or trade-in pending execution of lease agreement; refund or return upon non-execution
§ 334. Payment or trade-in pending execution of lease agreement; refund or return upon non-execution. 1. Any payment made by cash, check or similar means to a lessor pending the execution of a retail lease agreement shall be refunded to the lessee in the event the lease agreement is not executed. Any refund required by this subdivision shall be made by the lessor within fifteen business days after the lease application is rejected by the lessor or the prospective assignee.
Terms Used In N.Y. Personal Property Law 334
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
2. If a lessee is required to make a payment to a lessor by cash, check or similar means pending the execution of a retail lease agreement, the lessor shall notify the lessee in writing that the lessee has the right, if the lease application is not approved, to have any traded-in vehicle returned promptly and receive a prompt refund of any payments made.
3. If a lessee leaves his motor vehicle with the lessor in lieu of or in addition to a payment by cash, check or similar means, and the lessor and lessee agree that the parties shall enter into a retail lease agreement, the lessor shall not sell or transfer the vehicle traded-in until the lessee and the lessor execute a retail lease agreement. In the event a lease agreement is not executed, the lessor shall promptly return to the lessee the vehicle traded-in.
4. The provisions of this section shall not apply to any fee charged, received or collected by a holder in connection with the assumption of an existing retail lease agreement.
5. The provisions of this section shall not apply to the sale of a motor vehicle by a prospective lessee to a prospective lessor under a separate contract of sale for the price specified in the contract if such contract is executed before the parties have consummated a retail lease agreement, is in writing, is dated as of the date of the sale and is signed by the parties. To be exempt under the provisions of this subdivision, such agreement shall also:
(a) clearly and conspicuously disclose to the seller that the sale price for the vehicle establishes its value for purposes of determining the amount the lessor will credit as a "capitalized cost reduction" under any retail lease agreement subsequently consummated by the parties or as the amount due to the lessee for the vehicle in the event the parties fail to consummate a retail lease agreement;
(b) contain a conspicuous clause that is initialled separately by the prospective lessee whereby such lessee agrees to leave the amount of the purchase price on deposit with the prospective lessor pending the consummation of a retail lease agreement for a currently produced model year vehicle that is to be ordered specially from the manufacturer or for a model year vehicle that is not yet in production as of the date of the sale of the lessee's vehicle; and
(c) stipulate that seventy-five days after the date of the sale, the prospective lessee shall be entitled on demand to payment of the agreed upon price for the vehicle unless within that time the parties have consummated a separate retail lease agreement or have agreed to an earlier payment of the price to the lessee.