NY Pers Prop L § 335 (2021)
2021 New York Laws PEP - Personal Property Article 9-A - Motor Vehicle Retail Leasing Act 335 - Total Loss Notice and Waiver of the Gap Amount.

§  335.  Total  loss  notice  and  waiver of the gap amount. 1. If the   retail lease agreement provides that the  lessee  shall  be  responsible   upon  a  total loss of the vehicle occasioned by its theft, confiscation   or physical damage  for  the  gap  amount,  the  lessor,  prior  to  the   execution  of  the  agreement,  shall by a notice on a separate document   conspicuously disclose that fact  and  the  obligations  for  which  the   lessee  would  remain  liable  in  the event of a theft, confiscation or   total loss of the vehicle. If the lessor is required  under  subdivision   two  of this section to offer to waive its contractual right to hold the   lessee liable for the gap amount in the event of a  total  loss  of  the   vehicle  occasioned  by  its  theft or physical damage, the notice shall   also: (a) state that for a separate charge disclosed in the  notice  the   lessor  will  waive  its contractual right to hold the lessee liable for   the gap amount in the event of a total loss of the vehicle occasioned by   its theft or physical damage; (b)  contain  a  provision  informing  the   lessee  that  he or she may as an alternative to purchasing a waiver, be   able to purchase insurance covering the gap  amount  from  an  insurance   company  which  has  been  licensed  by  the superintendent of financial   services to write motor vehicle lessee gap insurance in this state;  and   (c)  contain a provision permitting the lessee to indicate whether he or   she wants the lessor to waive its contractual right to hold  the  lessee   liable  for  the  gap amount in the event of a total loss of the vehicle   occasioned by its theft or physical damage. The notice shall  be  signed   by the lessee. The lessor or assignee shall provide a copy of the signed   notice  to  the  lessee,  and  shall  maintain a copy in the lessor's or   assignee's files for at least the term of the lease. Failure to  provide   the  notice  and  to  obtain  the lessee's signature as required by this   subdivision shall  invalidate  any  provision  of  the  agreement  which   otherwise  would  obligate  a lessee to pay to the holder, after a total   loss of the motor vehicle  occasioned  by  its  theft,  confiscation  or   physical  damage  the  gap  amount.  No  retail lease agreement shall be   conditioned upon the lessee's obtaining  of  motor  vehicle  lessee  gap   insurance  as  set  forth in subparagraph (B) of paragraph twenty-six of   subsection (a) of section one  thousand  one  hundred  thirteen  of  the   insurance law.2.  If  the  retail  lease agreement provides that the lessee shall be   responsible upon a total loss of the vehicle occasioned by its theft  or   physical  damage  for the gap amount, the lessor, prior to the execution   of the agreement, shall offer to waive its contractual right to hold the   lessee liable for the gap amount in the event of a  total  loss  of  the   vehicle  occasioned  by  its  theft  or  physical  damage, only if motor   vehicle lessor gap insurance coverage is available to the lessor or  the   anticipated   assignee   and   such   coverage   is   obtained   from  a   property/casualty insurance company, which  has  been  licensed  by  the   superintendent  of  financial  services  of  this  state  to write motor   vehicle lessor gap insurance in this  state.  This  offer  may  be  made   contingent  upon  the  payment  by  the lessee of a separate charge that   shall not exceed the cost of lessor gap insurance  covering  the  retail   lease  transaction plus an administrative fee not to exceed ten dollars.   Nothing contained in this section shall  be  construed  to  authorize  a   waiver,  in  connection  with a transaction with respect to which lessor   gap insurance has not been obtained, of a contractual right to hold  the   lessee  liable  for  the  gap amount in the event of a total loss of the   vehicle occasioned by its theft or physical damage.3. A lessor shall not be  obligated  under  subdivision  two  of  this   section  to  offer  to  waive  its  contractual right to hold the lessee   liable for the gap amount if, during the current calendar year or during   the odd-numbered calendar year immediately preceding the  calendar  year    in  which  the  agreement is entered into, the lessor or the anticipated   assignee of the lessor has received motor vehicle lessor  gap  insurance   declination  notices  or  other  evidence  of  unavailability from every   insurance  company  whose  name  appears  on the department of financial   services compilation of insurance companies which during  that  calendar   year were authorized to write motor vehicle lessor gap insurance in this   state. Evidence of these declinations shall be retained by such a lessor   or  the  anticipated assignee of such a lessor for a period of six years   after the expiration of the calendar year in which they were issued.4. In order to enable lessors or their anticipated assignees to comply   with the requirements imposed by subdivision two of  this  section,  the   superintendent  of financial services shall compile and make available a   periodically  updated  list  of  those  insurance  companies  which  are   authorized  to write motor vehicle lessor gap insurance coverage in this   state.5. Nothing in this section shall be construed to apply to the  lessor,   or  any anticipated assignee of a lessor, under a retail lease agreement   under which the lessee is not liable upon a total loss  of  the  vehicle   occasioned  by  its  theft,  confiscation or physical damage for the gap   amount.