In this subtitle the following words have the meanings indicated. “Adjusted capitalized cost” means the amount which serves as the basis for determining the base lease payment, computed by subtracting from the capitalized cost any capitalized cost reduction. “Adjusted capitalized cost” is amortized during the lease term to the estimated residual value by the application of a portion of each scheduled lease payment. “Capitalized cost” means the amount which, when reduced by the amount of the capitalized cost reduction, equals the adjusted capitalized cost. “Capitalized cost” shall include all items that are capitalized in the lease and, after the application of the capitalized cost reduction, amortized by the scheduled lease payments over the term of the lease. “Capitalized cost” shall include to the extent capitalized and amortized as set forth in paragraph (2) of this subsection: Taxes, registration, license, acquisition, administration, assignment, and other similar fees; Charges for insurance, an extended warranty, mechanical repair contract, service contract, vehicle maintenance agreement, and any other similar charge; Charges for a waiver of the contractual obligation to pay the gap amount; Charges for accessories and installation of accessories; Charges for delivering, servicing, repairing, or improving the vehicle; and Charges for other goods, services, and benefits incidental to the consumer lease transaction. “Capitalized cost” also shall include, to the extent capitalized and amortized as set forth in paragraph (2) of this subsection, with respect to a vehicle or other property traded–in in connection with a lease, the unpaid balance of any amount financed under an outstanding vehicle loan agreement or vehicle retail installment contract or the unpaid portion of the early termination obligation under any lease or other obligation of the lessee. “Capitalized cost reduction” means any payments made by cash, check, rebates, or similar means that are in the nature of down payments made by the lessee and any net trade–in allowance granted by the lessor at the inception of the consumer lease for the purpose of reducing the capitalized cost. “Capitalized cost reduction” does not include any base lease payments due at the inception of the lease or all of the lease payments if they are all paid at the inception of the lease. “Consumer Leasing Act” means that act of Congress codified at 15 U.S.C. §§ 1667 through 1667e, and regulations promulgated pursuant thereto, as amended. “Dealer” means a dealer as defined in § 15–101(c) of the Transportation Article. “Lease” or “leasing” means a contract in the form of a bailment or lease for the use of a motor vehicle by an individual primarily for personal, family, or household purposes, for a period of time exceeding 4 months, including renewal periods, whether or not the lessee has the option to purchase or otherwise become the owner of the motor vehicle at the expiration of the lease. “Lease” does not include: A lease intended as security as defined in § 11–127.1(a) of the Transportation Article; A lease which meets the definition of a credit sale in Federal Regulation Z, 12 C.F.R. § 226.2(A); A lease for agricultural, business, or commercial purposes; or A lease made to an organization. “Lessee” means an individual who leases under, or who is offered, a motor vehicle lease. “Lessor” means a person who during any 12–month period leases or offers to lease five or more motor vehicles or who is assigned five or more leases. “Lessor” does not include the holder of a security interest in leases to secure an obligation or a holder of an interest in a trust that owns leases. “Manufacturer, factory branch, or distributor” means a person, partnership, association, corporation, or entity engaged in the business of manufacturing or assembling motor vehicles or of distributing motor vehicles to motor vehicle dealers as defined in § 15–201(b), (c), and (e) of the Transportation Article. “Motor vehicle” means a motor vehicle that is registered in this State as a: Class A (passenger) motor vehicle; Class E (truck) motor vehicle with a 3/4 ton or less manufacturer’s rated capacity; or Class M (multipurpose) motor vehicle. “Motor vehicle” does not include a motor home as defined by the Motor Vehicle Administration. “Original lessor” means the person identified in the lease as the lessor of the motor vehicle. “Original lessor” does not include any assignee of the lease. “Warranty” means the written warranty, so labeled, of the manufacturer of a new motor vehicle including any terms or conditions precedent to the enforcement of obligations under that warranty and shall include any motor vehicle subject to a lease. “Warranty” includes any implied warranties provided for by federal or State law, including the federal Magnusson Moss Warranty Act and the Maryland Uniform Commercial Code. “Warranty period” means the earlier of: The period of the motor vehicle’s first 15,000 miles of operation; or 15 months following the date of original delivery of the motor vehicle to the lessee.

A lease shall be in writing and signed by the lessor and the lessee. The printed portion of the lease, other than directions for completion of the lease and the text of any assignment between the original lessor and an assignee, shall be printed in a size equal to at least 8 point type. The lease shall contain the following items printed or written in a conspicuous manner: At the top of the lease, the words “Motor Vehicle Lease Agreement”; If physical damage or liability insurance coverage for bodily injury and property damage caused to others is not included in the lease, a notice substantially similar to the following: “No physical damage or liability insurance coverage for bodily injury or property damage caused to others is included in this lease”; Directly above the acknowledgment permitted by subsection (c) of this section, a written notice substantially similar to the following: “Notice to the lessee: This is a lease. You have no ownership rights in the motor vehicle unless and until you exercise your option to purchase the motor vehicle, if this lease contains a purchase option. Do not sign this lease before you read it or if it contains any blank space. You are entitled to a completely filled in copy of this lease when you sign it”; A statement substantially similar to the following: “Early termination may require you to pay a substantial amount”; and The following provision in at least 10 point boldface type: “Notice Any holder of this consumer lease is subject to all claims and defenses which the lessee could assert against the lessor of the motor vehicle. Recovery hereunder by the lessee shall not exceed amounts paid by the lessee under this lease.” The lessor shall deliver to the lessee, or mail to the lessee at the lessee’s address shown on the lease, a copy of the lease signed by the lessor. Any acknowledgment by the lessee of delivery of a copy of the lease shall be conspicuous and shall appear directly above the space reserved for the lessee’s signature. The lease shall state the names of the original lessor and lessee, the place of business of the original lessor, the residence of the lessee as specified by the lessee, and a description of the motor vehicle, including its make, model year, model, and, if known, the motor vehicle’s identification number or marks. The lease shall contain: All items required to be disclosed by the Consumer Leasing Act; A disclosure of the capitalized cost; and A provision briefly describing the lessee’s rights upon default. If the lessee is obligated under the lease to maintain liability insurance or other insurance on the motor vehicle and if subsequent to execution of the lease the lessee fails to maintain the required insurance, if the lease permits, the lessor may procure insurance for either the interests of the lessee and the lessor or the interest of either of them insuring substantially the same risks required to be insured by the lease. The lease may also provide that the amount of the premium paid by the lessor may be the subject of a lease charge as though such amount was part of the capitalized cost, and shall be subject to the default provisions of the lease. Nothing in this subsection shall prevent the lessor from pursuing any other remedy for default set forth in the lease or provided by law. If the lease permits, a lessor may impose on the lessee: A late or delinquency charge for payments or portions of payments that are in default under the lease; A collection charge, which may include all court and other collection costs actually incurred by the lessor and, if the lease is referred for collection to an attorney who is not a salaried employee of the lessor, a reasonable attorney’s fee; and If any payment is made to the lessor with a check that is dishonored on the second presentment, a charge not to exceed $15. No more than one late or delinquency charge may be imposed for any single payment or portion of payment, regardless of the period during which it remains in default. Except as permitted by paragraph (2) of this subsection, no lease shall be signed by any party if it contains blank spaces to be filled in after it has been signed. If delivery of the motor vehicle is not made at the time of execution of the lease, the motor vehicle’s identifying numbers, marks, or similar information and the due date of the first payment may be filled in after execution of the lease. The lessee’s written acknowledgment, conforming to the requirements of subsection (c) of this section, of delivery of a copy of the lease shall be conclusive proof of delivery of a copy of the consumer lease in any action or proceeding by or against an assignee of the lease without knowledge to the contrary at the time of the assignment. Notwithstanding any contrary provision of this subtitle or other laws of this State: Subject to the rights of the lessee under the lease, a lessor may sell a lease, a leased motor vehicle, or an interest in a lease on such terms and conditions and for such price as may be mutually agreed upon between the lessor and the lessor’s assignee; and No filing of the assignment, no notice to the lessee of the assignment, and no requirement that the lessor be deprived of dominion over payments upon the lease or over the motor vehicle if repossessed by or returned to the lessor, shall be necessary to the validity of a written assignment of a lease as against creditors, subsequent purchasers, pledgees, mortgagees, or encumbrancers of the lessor. Until the lessee has notice of assignment of a lease, payment made by the lessee to the last known holder of the lease shall be binding upon all subsequent assignees. If requested by the lessee, the assignee shall furnish reasonable proof that the assignment has been made and the lessee may pay the original lessor until reasonable proof of the assignment has been furnished. The lessor shall provide the lessee with a written receipt for any payment made in cash. Upon written request from a lessee, the lessor shall give or forward to the lessee a written statement of the dates and amounts of the payments that have been made under the lease and the amount of the lessee’s remaining payments and any other amounts owed to the lessor as reflected on the lessor’s books and records at the time of the notice. Upon written request from a lessee, the lessor shall give or forward to the lessee a written estimate of the lessee’s total early termination liability under the lease. No charge may be imposed on the lessee for preparation of the statements provided for in paragraphs (1) and (2) of this subsection, except a lessor may impose a reasonable fee, not to exceed $5 per statement, if: The lessee requests more than one statement under paragraph (1) of this subsection or more than one statement under paragraph (2) of this subsection in any 12-month period; and The charge is disclosed in the lease. A lease may not contain any provision by which: In the absence of the lessee’s default, the lessor may, arbitrarily and without reasonable cause, accelerate maturity of any part or all of the amount owing under the lease; The lessor may accelerate maturity of any part or all of the amount owing under the lease solely because the lessor deems itself insecure; A power of attorney is given to confess judgment, or an assignment of wages is given; The lessor, or other person acting on behalf of the lessor, is given authority to enter upon the lessee’s premises unlawfully, or to commit any breach of the peace in the repossession of the motor vehicle; The lessee waives any right of action against the lessor, or other person acting on behalf of the lessor, for any illegal act committed in the collection of payments under the lease or in the repossession of the motor vehicle; The lessee executes a power of attorney appointing the lessor, or other person acting on behalf of the lessor, as the lessee’s agent in collection of payments under the lease or in the repossession of the motor vehicle; provided, however, that this paragraph shall not prohibit the inclusion in a lease of a limited power of attorney or other provision authorizing the lessor to execute in the lessee’s name any proofs of insurance claims or losses, to execute in the lessee’s name any titling and registration documents, or to endorse the lessee’s name on any insurance settlement or premium rebate draft or check the proceeds of which are applicable to the lessee’s obligations under the lease; The lessor is relieved from liability for any legal remedy which the lessee may have against the lessor under the lease, or any separate instrument executed in connection therewith; The maturity of any part or all of the amount owing under the lease is accelerated where, following a default consisting solely of the failure to make timely payments, a lessee who has the right to redeem the lease makes timely payment of an amount sufficient to redeem the lease under § 14-2008(h) of this subtitle; or The lessee waives any right provided to the lessee by this subtitle. Any clause or provision prohibited by subsection (l) of this section shall be unenforceable but shall not otherwise affect the lease’s continuing validity and enforceability. The penalties provided in § 14-2007 of this subtitle or in § 13-408 of this article do not apply to violations of subsection (l) of this section unless a lessor attempts to enforce a provision prohibited by that subsection.

A person who leases vehicles to lessees may not: Make any false, falsely disparaging, or misleading oral or written statement, visual description, or other representation of any kind that has the capacity, tendency, or effect of deceiving or misleading a consumer or lessee; By any means advertise or offer to the public any motor vehicle without intent to lease it as advertised or offered; Misrepresent a lease of a motor vehicle as a sale; Fail to include any dealer processing or freight charges in determining the adjusted capitalized cost used to calculate the base lease payment shown in an advertisement for a leased vehicle; or Advertise to the general public a capitalized cost reduction to the lessee unless the capitalized cost reduction is offered to all potential lessees. Except as allowed by paragraph (2) of this subsection, in offering to allow a lessee to cure a default by entering into a new lease for the same motor vehicle, a lessor may not include in the new lease any material provision that is less favorable to the lessee than the provisions of the original lease. A lessor may include in a lease under paragraph (1) of this subsection an increase in one or more of the following: The security deposit; The down payment paid to the lessor; or The lease payments, so long as the total of scheduled lease payments over the term of the new lease does not exceed the total of scheduled lease payments under the original lease.

To the extent that §§ 2–313 through 2–318, inclusive, of this article apply to the purchase of a motor vehicle, the rights and remedies provided for in those sections shall apply to the lease of a motor vehicle and may be exercised by any lessee. If the warranty period is to include those miles of operation when the new motor vehicle is in the possession of any person other than the lessee, the manufacturer shall state that fact in 12 point boldface type in the manufacturer’s written warranty. If a new motor vehicle does not conform to all applicable warranties during the warranty period, the lessee shall, during the warranty period, report the nonconformity, defect, or condition by giving written notice to the manufacturer, factory branch, or lessor by certified mail, return receipt requested. Notice of this procedure shall be conspicuously disclosed to the lessee in writing at the time of lease of the motor vehicle. The lessee shall provide an opportunity for the manufacturer or factory branch, its agent or authorized dealer, or the lessor or the lessor’s agent to cure the nonconformity, defect, or condition. The manufacturer or factory branch, its agent or its authorized dealer, or the lessor or the lessor’s agent shall correct the nonconformity, defect, or condition at no charge to the lessee, even if repairs are made after the expiration of the warranty period. If, during the warranty period, the manufacturer or factory branch, its agent or authorized dealer, or the lessor or the lessor’s agent is unable to repair or correct any nonconformity, defect, or condition that substantially impairs the use and market value of the motor vehicle to the lessee after a reasonable number of attempts, the manufacturer or factory branch, at the option of the lessee shall: Replace the motor vehicle with a comparable motor vehicle acceptable to the lessee; or Accept return of the motor vehicle from the lessee and refund to the lessee all money paid by the lessee to repair the defect, condition, or nonconformity pursuant to a lease, including all excise tax, license fees, registration fees, and any similar governmental charges, less a reasonable allowance for the lessee’s unimpaired use of the vehicle; and In the event a motor vehicle is replaced under paragraph (1)(i)1 of this subsection and provided that the lessee meets the lessor’s then current credit criteria with respect to the lease, the lessor shall: Transfer the title of the defective motor vehicle to the manufacturer; Accept title to the comparable replacement motor vehicle; Transfer possession of the comparable replacement motor vehicle to the lessee; and Execute a lease agreement with the lessee with the same time period, terms, and conditions of the original lease. In the event a manufacturer accepts return of a motor vehicle, under paragraph (1)(i)2 of this subsection, the lessee shall be compensated by the manufacturer for any money paid during the period in which the motor vehicle was not available due to the defect, condition, or nonconformity and the lessor shall be paid by the manufacturer all amounts due to the lessor under the terms of the lease. This subsection shall be construed to provide a mechanism through which the lessee and the lessor shall be made whole for losses incurred as a result of a motor vehicle’s nonconformity, defect, or condition, and actions taken to conform the motor vehicle to applicable warranties. If a manufacturer, factory branch, dealer, or lessor accepts return of a motor vehicle as described under paragraph (1)(i) of this subsection, the lessee may not be obligated to pay any penalties, early termination fees, or other charges as a consequence of the return of the motor vehicle. It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable warranties if: The same nonconformity, defect, or condition has been subject to repair 4 or more times by the manufacturer or factory branch, or its agents or authorized dealers, within the warranty period but such nonconformity, defect, or condition continues to exist; The motor vehicle is out of service by reason of repair of 1 or more nonconformities, defects, or conditions for a cumulative total of 30 or more days during the warranty period; or A nonconformity, defect, or condition resulting in failure of the braking or steering system has been subject to the same repair at least once within the warranty period, and the manufacturer has been notified and given the opportunity to cure the defect, and the repair does not bring the vehicle into compliance with the motor vehicle safety inspection laws of the State. The term of any warranty, the warranty period, and the 30–day out–of–service period shall be extended by any time during which repair services are not available to the lessee by reason of war, invasion, strike, or fire, flood, or other natural disaster. If a motor vehicle is returned to a manufacturer or factory branch under subsection (d)(1)(i) of this section, the manufacturer or factory branch shall notify the Motor Vehicle Administration of the fact that the vehicle was returned under this subtitle as defective. If a motor vehicle that is returned under this subtitle is then made available for resale or subsequent lease, the seller or lessor shall disclose prior to sale or lease in writing in a clear and conspicuous manner, on a separate piece of paper in 10 point all capital type, to a lessee or buyer the material fact that this motor vehicle was returned to the manufacturer or factory branch, the nature of the defect which resulted in the return, and the condition of the motor vehicle at the time of resale or subsequent lease.

Title 2A of this article shall not apply to motor vehicle leases governed by this subtitle. Except as provided in subsection (a) of this section, this subtitle does not limit the rights or remedies that are otherwise available to a lessee under any other law, including any implied warranties, including the federal Magnusson Moss Warranty Act and the Maryland Uniform Commercial Code. If a manufacturer or factory branch has established an informal dispute settlement procedure which complies in all respects with the provisions of Title 16, Code of Federal Regulations, Part 703, as amended, a lessee need not resort to that procedure before § 14-2004(c) of this subtitle applies. A lessee who has resorted to an informal dispute settlement procedure may not be precluded from seeking the rights or remedies available by law. Except as otherwise provided by this subtitle, any agreement entered into by a lessee for the lease of a new motor vehicle that waives, limits, or disclaims the rights set forth in this subtitle shall be void. If a lessor permits the lessee to assign any interest in the lease or in the motor vehicle, upon such assignment the rights available to a lessee under this subtitle shall inure to an assignee of the lessee’s rights under the lease or a subsequent transferee of the motor vehicle. Nothing in this subtitle shall be construed to permit a lessee to sublease a motor vehicle in violation of § 8-408 of the Criminal Law Article. Any action brought under this subtitle may not be brought more than 1 year after termination of the lease. Notwithstanding the limitation in paragraph (1) of this subsection, a lessee at any time may assert a violation of this subtitle in an action to collect the debt as a matter of defense, by recoupment or setoff. Except as provided in paragraph (2) of this subsection, a lessor may charge fees for excess wear and use or excess mileage if: The right to charge the fees and method for calculating the fees are disclosed in the lease in at least 8 point bold capital letters; At the time the vehicle is returned, the lessor conducts a visual inspection of the vehicle and provides the lessee with a reasonable opportunity to be present at the inspection. If the lessee is present, in addition to the notice required by subparagraph (iii) of this paragraph, the lessor shall provide the lessee at the time of the inspection with a written statement of the mileage and of the excess wear to the motor vehicle identified through the visual inspection. If the lessee is not present at the inspection, the lessor is only required to provide the lessee with the notice required by subparagraph (iii) of this paragraph; Within 30 days after obtaining possession of the motor vehicle, the lessor delivers or mails to the lessee at the lessee’s last known address: An itemized list of excess wear to the motor vehicle and the estimated or actual cost of repairing or replacing each item listed; and A statement of the number of miles above the amount permitted by the lease and the total charge to the lessee for the excess mileage. A lessor may not charge fees for excess wear and use or excess mileage if the lessee exercises an option to purchase the leased motor vehicle.

This subtitle applies only to the lease of a motor vehicle where the lessee has signed or been offered the lease in this State. This subtitle does not apply to a fleet lease of 5 or more motor vehicles. A lessor, manufacturer, factory branch, distributor, or dealer may not exclude or limit the operation of this subtitle.

Except as otherwise provided in this subtitle, a lessor who fails to comply with any requirement imposed by this subtitle with respect to a person shall be liable to the person for: Any actual damage sustained by the person as a result of the failure; and An amount equal to 25% of the total amount of monthly payments under the lease, but not less than $100 nor greater than $1,000. A court may award reasonable attorney’s fees to a prevailing party under this subtitle. If it appears to the satisfaction of the court that an action is brought in bad faith or is of a frivolous nature, the court may order the offending party to pay the other party reasonable attorney’s fees. A violation of this subtitle shall be an unfair or deceptive trade practice within the meaning of Title 13 of this article, except that a person who recovers damages under this section for a violation of this subtitle shall not be entitled to recover damages for the same violation under § 13–408 of this article. A lessee may not recover damages in an action under this subtitle or under Title 13 of this article for any failure to comply with any provision of this subtitle if, within 60 days after discovering an error and prior to the institution of an action under this subtitle or under Title 13 of this article or the receipt of written notice of the error from the lessee, the lessor notifies the lessee of the error and makes whatever adjustments are necessary to correct the error. If a complaint for violation of any provision of this subtitle is filed with the Commissioner of Financial Regulation, the Commissioner may investigate the complaint and hold a hearing on it in accordance with § 11-413 of the Financial Institutions Article. The Commissioner shall give to the person against whom a complaint is filed at least 10 days’ written notice of the complaint and the time and place of any hearing. The notice shall be in writing and sent by registered or certified mail to the person’s principal place of business. If, after the hearing, the Commissioner finds that a person has engaged or is engaging in any act or practice prohibited by this subtitle, the Commissioner shall order the person to cease and desist from the act or practice. The order of the Commissioner shall comply with the Administrative Procedure Act. If no appeal is filed, the order becomes final after expiration of the time allowed by the Administrative Procedure Act for appeals from the Commissioner’s order. If an appeal is filed, the order becomes final after final decision of the court affirming the order or dismissing the appeal. For purposes of this section, the Commissioner’s order may not apply to any: Incorporated bank, savings institution, or trust company; Savings and loan association; or Federal credit union or state chartered credit union. In this subsection, “notice” means the first to occur of the following: When the lessor receives a written notice from the lessee notifying the lessor of an error or violation; When the lessor receives a written notice from the Commissioner of Financial Regulation or the appropriate regulatory authority notifying the lessor of an error or violation; or When the lessor receives service of process in a civil action for an error or violation instituted by a lessee in a court of competent jurisdiction. The penalty provided under subsection (a)(2) of this section does not apply where a lessor: Unintentionally and in good faith fails to comply with this subtitle; and Corrects the error or violation and makes the lessee whole for all losses, including reasonable attorney’s fees and interest, where appropriate, within 10 days after the lessor receives notice of the error or violation. The burden shall be on the lessor to show that the lessor’s failure to comply with this subtitle was unintentional and in good faith. A lessor who knowingly violates any provision of this subtitle shall be liable to the lessee for 3 times the amount of fees and charges collected in excess of that authorized by this subtitle.

A lessor may repossess a leased motor vehicle if the lessee is in default or a law enforcement agency has seized the motor vehicle and will not unconditionally return the motor vehicle to the lessor. The lessor may repossess the leased motor vehicle from a lessee only by: Legal process; or Self-help, without use of force. Nothing in this section authorizes a violation of criminal law. At least 10 days before a lessor repossesses any leased motor vehicle, the lessor may serve a written notice on the lessee of the intention to repossess the motor vehicle. The notice shall: State the default and any period at the end of which the leased motor vehicle will be repossessed; and Briefly state the rights of the lessee in case the leased motor vehicle is repossessed. The notice may be delivered to the lessee personally or sent to the lessee at the lessee’s last known address by registered or certified mail. Within 5 days after the lessor repossesses the leased motor vehicle, the lessor shall deliver to the lessee personally or send to the lessee at the lessee’s last known address by registered or certified mail a written notice which states: The right of the lessee to redeem the leased motor vehicle and the amount payable for it; The rights of the lessee as to a sale of the motor vehicle and the lessee’s liability for a deficiency; and The exact location where the leased motor vehicle is stored and the address where any payment is to be made. For 15 days after the lessor gives the notice required by subsection (e) of this section, the lessor shall retain the repossessed motor vehicle. During the period provided for in subsection (f) of this section, the lessee may: Redeem and retake possession of the motor vehicle; and Resume the performance of the lease. To redeem the leased motor vehicle, the lessee shall: Tender the amount due under the lease at the time of redemption, without giving effect to any provision which allows acceleration of any amounts otherwise payable after that time; Tender performance of any other promise for the breach of which the motor vehicle was repossessed; and If the discretionary notice provided for in subsection (c) of this section was given, pay the actual and reasonable expenses of retaking and storing the motor vehicle. This section does not apply, and the lessor shall have the right to enforce the lease according to its terms, including the default and early termination provisions of the lease and any provision that requires the lessee to pay an amount due at early termination, if: The date of the default under the lease that led to the present repossession occurred within 18 months after the last repossession; or The lessee was guilty of fraudulent conduct, intentionally and wrongfully concealed, removed, damaged, or destroyed the motor vehicle, or attempted to do so, and the motor vehicle was repossessed because of that conduct.

This section applies if the lease provides that the motor vehicle is to be sold after repossession and the lessee is to be responsible for any deficiency arising from the sale of the motor vehicle. The lessor shall sell the motor vehicle that was repossessed at: Subject to subsection (c) of this section, a private sale; or A public auction. At least 10 days before the sale, the lessor shall notify the lessee in writing of the time and place of the sale, by certified mail, return receipt requested, sent to the lessee’s last known address. Any sale of a repossessed motor vehicle must be accomplished in a commercially reasonable manner. In all cases of a private sale of a repossessed motor vehicle under this section, a full accounting shall be made to the lessee in writing. This accounting shall contain the following information: The unpaid balance at the time the motor vehicle was repossessed; The refund credit of unearned insurance premiums, if any; The remaining net balance; The proceeds of the sale of the motor vehicle; The remaining deficiency balance, if any, or the amount due to the lessee; and All expenses incurred as a result of the sale. The Commissioner of Financial Regulation may make a determination concerning any private sale that the sale was not accomplished in a commercially reasonable manner. Upon that determination, the Commissioner may enter an order disallowing any claim for a deficiency balance. The proceeds of a sale to which this section applies shall be applied, in the following order, to: The actual and reasonable costs of the sale; The actual and reasonable costs of retaking and storing the property; and The unpaid balance owing under the lease agreement at the time the property was repossessed. The lessor shall furnish to the lessee a written statement which shows the distribution of the proceeds. If the provisions of this subtitle, including the requirement of furnishing a notice following repossession, are not followed, the lessor shall not be entitled to any deficiency judgment to which it would be entitled under the lease agreement.

Any penalties or charges set forth in the lease or claimed by the lessor in the event of early termination or default must comply with the standards set forth in the Consumer Leasing Act.