§ 340. Establishment of realized value at lease termination when
purchase option not exercised; notice of intention to sell motor
vehicle. 1. If an agreement is terminated early and there is no option
to purchase the vehicle or the lessee does not exercise any option he or
she may have to purchase the vehicle, or if the lessee's liability at
the scheduled end of the lease term is based upon the estimated residual
value of the vehicle and the lessee does not exercise any option he or
she may have to purchase the vehicle, the holder shall act in a
commercially reasonable manner when disposing of the vehicle or
obtaining cash bids for the purpose of establishing the realized value
of the vehicle, which may be its value in the customary wholesale
market. A lessee whose agreement is terminated early without the
exercise of a purchase option or whose liability at the scheduled end of
the lease term is based upon the estimated residual value of the vehicle
may obtain, at his or her expense, a professional appraisal by an
independent third party agreed to by the lessee and the holder of the
wholesale value which could be realized at sale of the leased vehicle.
If a professional appraisal is obtained by such a lessee, the appraised
value shall be final and binding upon the parties and shall be used as
the realized value in determining the liability of the lessee at early
termination or at the scheduled end of the lease term.

2. If an agreement is terminated early and there is no option to
purchase the vehicle or the lessee does not exercise any option he or
she may have to purchase the vehicle, or if the lessee's liability at
the scheduled end of the lease term is based upon the estimated residual
value of the vehicle and the lessee does not exercise any option he or
she may have to purchase the vehicle, the holder shall give the lessee
at least ten days written notice of its intention to sell the motor
vehicle. A notice of intention to sell the vehicle need not be given if
the holder and lessee have agreed in writing to the amount of the
lessee's liability under the retail lease agreement after the lessee
returns the vehicle to the holder or the lessee has fully satisfied his
or her obligations under the agreement. A holder gives notice to the
lessee under this subdivision when he or she delivers the notice to the
lessee or mails the notice to him or her at his or her last known
address.

3. The notice of intention to sell the vehicle shall set forth
separately any charges or sums due under the agreement and shall clearly
and conspicuously state that the lessee will be liable for the
difference between the estimated residual value of the vehicle and its
realized value, if such liability exists. The notice also shall state
that the lessee has the right to submit a cash bid for the purchase of
the vehicle.