Liability of Lessee for Replacement Cost of Leased Property; Fair Market Value

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Sec. 10. (a) If a lessee is liable to a lessor for the replacement cost of property leased under a rental purchase agreement, the lessor may not charge the lessee more than the fair market value for the property.

(b) For purposes of subsection (a), fair market value shall be determined by the lessor in the same manner, and using the same method, that would apply if the lessee were exercising an early purchase option under the rental purchase agreement.

As added by P.L.138-1990, SEC.10. Amended by P.L.69-2018, SEC.41.


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