For lease agreements, initial disclosure statements must include: confirmation that the transaction is a lease; a description of the leased goods; the term of the lease; the cash value of the leased goods; the nature and amount of any other advances received or charges incurred by the lessee at or before the beginning of the term; the amount and purpose of each payment made by the lessee at or before the beginning of the term; the capitalized amount; the amount, timing and number of the periodic payments; the estimated residual value of the leased goods; if the lease agreement contains an option for the borrower to purchase the item  being leased, information regarding the circumstances under which the option  can be exercised and details regarding what the purchase price will be. for a residual obligation lease: the estimated residual cash payment; a statement to the effect that the lessee’s maximum liability at the end of the lease term is the sum of the estimated residual cash payment plus the difference, if any, between the estimated residual value and the realizable value of the leased goods; the circumstances, if any, under which the lessee or the lessor may terminate the lease before the end of the term and the amount, or the method of determining the amount, of any payment that the lessee will be required to make on early termination of the lease; details about any other circumstances that will cause the lessee to incur any additional charges related to the lease; the implicit finance charge; the Annual Percentage Rate (or APR); and the total lease cost. Last reviewed: October 2014