Oklahoma Administrative Code › Title 160 - Department of Consumer Credit › Chapter 10 - Consumer Leasing › Subchapter 5 - Disclosures › Section 160:10-5-1.2 - Content of disclosures

Current through Vol. 41, No. 20, July 1, 2024
For any consumer lease subject to this chapter, the lessor shall disclose the following information, as applicable:
(1)
Description of property.
A brief description of the leased property sufficient to identify the property to the lessee and lessor.
(2)
Amount due at lease signing or delivery.
The total amount to be paid prior to or at consummation or by delivery, if delivery occurs after consummation, using the term "amount due at lease signing or delivery." The lessor shall itemize each component by type and amount, including any refundable security deposit, advance monthly or other periodic payment, and capitalized cost reduction; and in motor vehicle leases, shall itemize how the amount due will be paid, by type and amount, including any net trade-in allowance, rebates, noncash credits, and cash payments in a format substantially similar to the model forms in the appendixes of this chapter.
(3)
Payment schedule and total amount of periodic payments.
The number, amount, and due dates or periods of payments scheduled under the lease, and the total amount of the periodic payments.
(4)
Other charges.
The total amount of other charges payable to the lessor, itemized by type and amount, that are not included in the periodic payments. Such charges include the amount of any liability the lease imposes upon the lessee at the end of the lease term; the potential difference between the residual and realized values referred to in paragraph (11) of this section is excluded.
(5)
Total of payments.
The total of payments, with a description such as "the amount you will have paid by the end of the lease." This amount is the sum of the amount due at lease signing (less any refundable amounts), the total amount of periodic payments (less any portion of the periodic payment paid at lease signing), and other charges under paragraphs (2), (3), and (4) of this section. In an open-end lease, a description such as "you will owe an additional amount if the actual value of the vehicle is less than the residual value" shall accompany the disclosure.
(6)
Payment calculation.
In a motor vehicle lease, a mathematical progression of how the scheduled periodic payment is derived, in a format substantially similar to the applicable model form in the appendixes of this chapter, which shall contain the following:
(A)
Gross capitalized cost.
The gross capitalized cost, including a disclosure of the agreed-upon value of the vehicle, a description such as "the agreed-upon value of the vehicle [state the amount] and any items you pay for over the lease term (such as service contracts, insurance, and any out-standing prior credit or lease balance)," and a statement of the lessee's option to receive a separate written itemization of the gross capitalized cost. If requested by the lessee, the itemization shall be provided before consummation.
(B)
Capitalized cost reduction.
The capitalized cost reduction, with a description such as "the amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that reduces the gross capitalized cost."
(C)
Adjusted capitalized cost.
The adjusted capitalized cost, with a description such as "the amount used in calculating your base [periodic] payment."
(D)
Residual value.
The residual value, with a description such as "the value of the vehicle at the end of the lease used in calculating your base [periodic] payment."
(E)
Depreciation and any amortized amounts.
The depreciation and any amortized amounts, which is the difference between the adjusted capitalized cost and the residual value, with a description such as "the amount charged for the vehicle's decline in value through normal use and for any other items paid over the lease term."
(F)
Rent charge.
The rent charge, with a description such as "the amount charged in addition to the depreciation and any amortized amounts." This amount is the difference between the total of the base periodic payments over the lease term minus the depreciation and any amortized amounts.
(G)
Total of base periodic payments.
The total of base periodic payments with a description such as "depreciation and any amortized amounts plus the rent charge."
(H)
Lease payments.
The lease payments with a description such as "the number of payments in your lease."
(I)
Base periodic payment.
The total of the base periodic payments divided by the number of payment periods in the lease.
(J)
Itemization of other charges.
An itemization of any other charges that are part of the periodic payment.
(K)
Total periodic payment.
The sum of the base periodic payment and any other charges that are part of the periodic payment.