Michigan Laws 445.1015 – Termination of motor vehicle lease; payments; charges; refund of advance payments
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Terms Used In Michigan Laws 445.1015
- 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
- Lessee: means that term as defined in section 1 of 1990 PA 169, MCL 445. See Michigan Laws 445.1012
- Lessor: means that term as defined in section 1 of 1990 PA 169, MCL 445. See Michigan Laws 445.1012
- Motor vehicle: means that term as defined in section 1 of 1990 PA 169, MCL 445. See Michigan Laws 445.1012
- Motor vehicle lease: means a lease contract as that term is defined in section 1 of 1990 PA 169, MCL 445. See Michigan Laws 445.1012
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) If a motor vehicle lease is terminated under this act, the lessee shall pay any past due lease payments owed to the lessor as of the effective date of the termination and a pro rata share of any current lease payments owed as of that effective date.
(2) If a motor vehicle lease is terminated under this act, the lessor may not impose an early termination charge for that termination. However, the lessee shall pay any taxes, court costs, title or registration fees, and any other obligation and liability of the lessee under the terms of the lease, including, but not limited to, reasonable charges to the lessee for excess wear, use, and mileage, that are due and unpaid as of the effective date of the termination.
(3) If a motor vehicle lease is terminated under this act, the lessor shall refund to the lessee any lease amounts paid in advance for a period after the effective date of the termination of that motor vehicle lease, within 30 days after the effective date of the lease’s termination.