§ 334. Payment or trade-in pending execution of lease agreement;
refund or return upon non-execution. 1. Any payment made by cash, check
or similar means to a lessor pending the execution of a retail lease
agreement shall be refunded to the lessee in the event the lease
agreement is not executed. Any refund required by this subdivision shall
be made by the lessor within fifteen business days after the lease
application is rejected by the lessor or the prospective assignee.

2. If a lessee is required to make a payment to a lessor by cash,
check or similar means pending the execution of a retail lease
agreement, the lessor shall notify the lessee in writing that the lessee
has the right, if the lease application is not approved, to have any
traded-in vehicle returned promptly and receive a prompt refund of any
payments made.

3. If a lessee leaves his motor vehicle with the lessor in lieu of or
in addition to a payment by cash, check or similar means, and the lessor
and lessee agree that the parties shall enter into a retail lease
agreement, the lessor shall not sell or transfer the vehicle traded-in
until the lessee and the lessor execute a retail lease agreement. In the
event a lease agreement is not executed, the lessor shall promptly
return to the lessee the vehicle traded-in.

4. The provisions of this section shall not apply to any fee charged,
received or collected by a holder in connection with the assumption of
an existing retail lease agreement.

5. The provisions of this section shall not apply to the sale of a
motor vehicle by a prospective lessee to a prospective lessor under a
separate contract of sale for the price specified in the contract if
such contract is executed before the parties have consummated a retail
lease agreement, is in writing, is dated as of the date of the sale and
is signed by the parties. To be exempt under the provisions of this
subdivision, such agreement shall also:

(a) clearly and conspicuously disclose to the seller that the sale
price for the vehicle establishes its value for purposes of determining
the amount the lessor will credit as a "capitalized cost reduction"
under any retail lease agreement subsequently consummated by the parties
or as the amount due to the lessee for the vehicle in the event the
parties fail to consummate a retail lease agreement;

(b) contain a conspicuous clause that is initialled separately by the
prospective lessee whereby such lessee agrees to leave the amount of the
purchase price on deposit with the prospective lessor pending the
consummation of a retail lease agreement for a currently produced model
year vehicle that is to be ordered specially from the manufacturer or
for a model year vehicle that is not yet in production as of the date of
the sale of the lessee's vehicle; and

(c) stipulate that seventy-five days after the date of the sale, the
prospective lessee shall be entitled on demand to payment of the agreed
upon price for the vehicle unless within that time the parties have
consummated a separate retail lease agreement or have agreed to an
earlier payment of the price to the lessee.