Bill Text: NJ A2495 | 2016-2017 | Regular Session | Amended

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Bill Title: Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Engrossed - Dead) 2017-12-11 - Received in the Senate, Referred to Senate Commerce Committee [A2495 Detail]

Download: New_Jersey-2016-A2495-Amended.html

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[First Reprint]

ASSEMBLY, No. 2495

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED FEBRUARY 4, 2016

 

 

Sponsored by:

Assemblywoman  PAMELA R. LAMPITT

District 6 (Burlington and Camden)

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

 

 

 

 

SYNOPSIS

     Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Consumer Affairs Committee on September 8, 2016, with amendments.

  

An Act concerning motor ¹[vehicles] vehicle¹ leases and supplementing Title 56 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.   A dealer or lessor shall allow a motor vehicle lease to be terminated ¹[prematurely] early¹ in the event of a lessee's death ¹, if the motor vehicle was leased in this State and, at the time of the lessee's death, registered in this State¹.

     b.    A dealer or lessor shall not impose or assess a fee for the early termination of a motor vehicle lease in the event of a lessee's death ¹pursuant to the provisions of subsection a. of this section.  This subsection shall not preclude a dealer or lessor from assessing a reasonable fee for a motor vehicle returned with excess wear, if specified in the lease agreement¹.

     c.     A motor vehicle lease shall not require, in the event of a lessee's death, that the decedent's surviving spouse, family member, guardian, or estate administrator or executor: purchase the leased motor vehicle; buy out the remainder of the lease; or continue to lease the motor vehicle under the original terms of the lease.

     d.    A surviving spouse, family member, guardian, or estate administrator or executor shall provide a death certificate ¹[,]¹ or other ¹[proof]¹ satisfactory ¹[,] proof of the lessee's death¹ to the dealer or lessor within 60 days after the death of the decedent ¹[to be eligible under] in order to have a lease terminated pursuant to the provisions of¹ this section. 

     ¹e.   The lease shall be terminated upon return of the motor vehicle to the dealer or lessor.

     f.     This section shall not apply to commercial vehicles.¹

 

     ¹2.   a.   A dealer or lessor shall provide written disclosure, in a contract or financing agreement to lease a motor vehicle, that the lease may be terminated early in the event of the lessee's death, pursuant to section 1 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill).

     b.    A violation of subsection a. of this section shall be subject to a penalty of $500, to be collected in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).¹

     ¹[2.  This] 3.  Section 1 of this¹ act shall take effect immediately ¹and shall apply to any motor vehicle lease signed on or after the date of enactment of this act, and section 2 of this act shall take effect on the first day of the second month next following enactment¹.