A retail lessor shall:

(1) Disclose in the lease agreement provided to the lessee, in a clear and conspicuous manner, any and all material terms, conditions, and limitations that apply to the lease agreement, including but not limited to the consumer lease disclosures required by the federal Truth in Lending Act and rules adopted under that Act;

Terms Used In Hawaii Revised Statutes 481L-2

  • Adjusted capitalized cost: means the gross capitalized cost, less the capitalized cost reduction, and is the amount used by the retail lessor in calculating the base periodic payment in the lease agreement. See Hawaii Revised Statutes 481L-1
  • Capitalized cost reduction: means the total amount of any rebate, cash payment, net trade-in allowance, check, credit card debit, and noncash credit or downpayment that reduces the gross capitalized cost, but does not include any periodic lease payments due at the inception of the lease or all of the periodic lease payments if they are paid at the inception of the lease. See Hawaii Revised Statutes 481L-1
  • Clear and conspicuous: means that written disclosures shall be made in a manner that is readable and understandable to the retail lessee and oral disclosures shall be made in a manner that is audible and understandable to the retail lessee. See Hawaii Revised Statutes 481L-1
  • Gross capitalized cost: means the amount agreed upon by the retail lessor and the retail lessee as the value of the motor vehicle and any items that are capitalized or amortized during the lease term, including but not limited to taxes, insurance, service agreements, registration fees, license fees, lease acquisition and administration fees, warranty charges, fees and charges for accessories and for installing accessories, charges for delivery, service and repair, charges for improving the motor vehicle and providing other services incidental to the agreement, the outstanding balance of a prior loan agreement, lease or motor vehicle retail installment contract, and the unpaid portion of the early termination obligation under an outstanding lease agreement. See Hawaii Revised Statutes 481L-1
  • 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
  • Lease agreement: means a written agreement for the transfer from a retail lessor to a retail lessee of the right to possess and use a motor vehicle in exchange for consideration for a scheduled term exceeding four months, whether or not the retail lessee has the option to purchase or otherwise become the owner of the motor vehicle upon expiration of the agreement. See Hawaii Revised Statutes 481L-1
  • Lease transaction: means a presentation made to the retail lessee concerning the motor vehicle, including a sales presentation or a document presented to the retail lessee, resulting in the execution of a lease agreement. See Hawaii Revised Statutes 481L-1
  • Markup: The process by which congressional committees and subcommittees debate, amend, and rewrite proposed legislation.
  • Retail lessee: means an individual who executes a lease agreement for a motor vehicle from a retail lessor primarily for personal, family, or household purposes. See Hawaii Revised Statutes 481L-1
  • Retail lessor: means a person who regularly engages in the business of selling or leasing motor vehicles and who offers or arranges a lease agreement for a motor vehicle. See Hawaii Revised Statutes 481L-1
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
  • Worksheet: means the primary document or documents used by the retail lessor to derive the monthly lease payment for a specific lease transaction. See Hawaii Revised Statutes 481L-1
(2) Disclose to the retail lessee in the lease agreement in a separate blocked section, in capital letters of at least ten-point bold type, as follows:

THIS IS A LEASE AGREEMENT. THIS IS NOT A PURCHASE AGREEMENT. PLEASE REVIEW THESE MATTERS CAREFULLY AND SEEK INDEPENDENT PROFESSIONAL ADVICE IF YOU HAVE ANY QUESTIONS CONCERNING THIS TRANSACTION. YOU ARE ENTITLED TO AN EXACT COPY OF THE AGREEMENT YOU SIGN. GET ALL PROMISES IN WRITING. ORAL PROMISES ARE DIFFICULT TO ENFORCE. IF YOU REQUEST IT, YOU CAN RECEIVE A COPY OF YOUR LESSOR’S LEASE CALCULATION WORKSHEET BEFORE YOU SIGN OR WITHIN SIX MONTHS AFTER SIGNING. YOU CAN ALSO RECEIVE UPON REQUEST A COPY OF ANY OF THE DOCUMENTS YOU REVIEWED DURING THE LEASE TRANSACTION.;

(3) Disclose to the retail lessee in the lease agreement in capital letters of at least ten-point bold type, with the appropriate amounts specified, the following:

(A) THE GROSS CAPITALIZED COST $____________________
(B) THE CAPITALIZED COST REDUCTION $________________
(C) THE ADJUSTED CAPITALIZED COST $_________________;
(4) Provide the retail lessee with a copy of each document that is signed by the retail lessee during the course of the lease transaction and any document that is referenced or incorporated into the lease agreement. Also, provide the retail lessee with a copy of each document requested by the retail lessee that is presented during the course of the lease transaction;
(5) Prepare all disclosures made pursuant to this section and section 481L-3 and all documents executed in a lease transaction in the language principally used in negotiating the lease transaction; and
(6) Upon request by the retail lessee at any time during the lease transaction and at any time during the first six months of the term of the lease agreement, provide to the retail lessee at no cost to the retail lessee a copy of the retail lessor’s worksheets used to calculate the periodic lease payment. Worksheets that are stored on computer media shall be reduced to printed form for the lessee. The worksheets shall be maintained by the retail lessor or its agents during the first six months of the term of the lease agreement. The retail lessor shall not be required to provide those portions of any worksheets that contain dealer markup information or lease assignment settlement amounts.

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