Acts and Regulations

2010-104 - General

Section 17
Disposition versions

Full text
Lessee’s maximum liability - residual obligation lease
17(1)The lessee’s maximum liability at the end of the term of a residual obligation lease after returning the leased goods to the lessor is calculated in accordance with the following formula:
M = P + (V − R)
where
Mis the maximum liability;
Pis the estimated residual cash payment;
Vis the estimated residual value; and
Ris the realizable value of the leased goods, as determined under subsections (2) and (3).
17(2)Subject to subsection (3), the realizable value of leased goods at the end of the term of the lease is the greater of
(a) the net proceeds obtained by the lessor when the lessor disposes of the goods,
(b) 80% of the estimated residual value, and
(c) the estimated residual value less 3 times the average monthly payment.
17(3)If the amount determined under paragraph (2)(a) is less than the amount determined under paragraph (2)(b) or (c), the realizable value is reduced according to the extent that the difference in the amounts is attributable to unreasonable or excessive wear or use, or to damage to the goods for which the lessee is responsible under the lease.
Lessee’s maximum liability - residual obligation lease
17(1)The lessee’s maximum liability at the end of the term of a residual obligation lease after returning the leased goods to the lessor is calculated in accordance with the following formula:
M = P + (V − R)
where
Mis the maximum liability;
Pis the estimated residual cash payment;
Vis the estimated residual value; and
Ris the realizable value of the leased goods, as determined under subsections (2) and (3).
17(2)Subject to subsection (3), the realizable value of leased goods at the end of the term of the lease is the greater of
(a) the net proceeds obtained by the lessor when the lessor disposes of the goods,
(b) 80% of the estimated residual value, and
(c) the estimated residual value less 3 times the average monthly payment.
17(3)If the amount determined under paragraph (2)(a) is less than the amount determined under paragraph (2)(b) or (c), the realizable value is reduced according to the extent that the difference in the amounts is attributable to unreasonable or excessive wear or use, or to damage to the goods for which the lessee is responsible under the lease.