(815 ILCS 636/45)
Sec. 45.
Restriction on early termination liability.
(a) The lessee shall have the right to terminate the consumer lease
at any time after the lessee has made 12 full periodic lease payments for which
lease charges have been
accrued by the holder or, in the case of a single payment lease, at the
expiration of 12 months from the consummation of the lease. Nothing in this
Section shall be deemed to prohibit the holder from permitting the lessee to
terminate the consumer lease before the expiration of 12 months.
(b) If a consumer lease is terminated early and there is no purchase
option or the lessee does not exercise a purchase option, the lessee's early
termination obligation may not exceed an amount equal to the sum of the
following:
(1) Any unpaid lease payments that accrued through |
| the date of early termination.
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(2) Any other unpaid amounts, other than excess
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| mileage charges, arising under the terms of the lease.
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(3) Any official fees and taxes imposed in connection
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(4) A disposition fee in an amount set forth in the
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(5) The reasonable costs of retaking, storing,
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| preparing for sale, and selling the vehicle, including reasonable attorneys' fees and collection and court costs incurred by the lessor in recovering or securing possession of the vehicle.
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(6) The amount, if any, by which (i) the balance
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| subject to lease charge plus the lease 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 lease accounting method exceeds (ii) the realized value of the vehicle.
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(7) Any other early termination charge expressly
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| disclosed in the consumer lease.
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(c) As an alternative to the constant yield and other generally
accepted lease accounting methods of determining the depreciation amounts
accrued through the date of early termination of a precomputed lease
transaction, those amounts may be determined under paragraph (6) of subsection
(b) of this Section by using a lease provision under which the lease charge is
calculated on the adjusted capitalized cost for the time outstanding
according to a generally
accepted actuarial method.
(d) This Section does not limit or restrict the manner of
calculating the lessee's early termination obligation, whether by way of
unamortized capitalized cost, discounted present value of remaining lease
payments, multiples of monthly payments, or otherwise.
(e) Any refundable security deposit or advance lease payment held by
the holder may be retained by the holder or lessor and shall be credited
against the
lessee's early termination obligation. The amount of the security deposit or
advance lease payment in excess of the amount of the lessee's early termination
obligation shall be returned to the lessee. The holder or lessor is not
obligated to pay
interest to the lessee on the security deposit.
(Source: P.A. 89-625, eff. 1-1-97.)
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