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People also ask
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What is considered a consumer lease under regulation M?
A consumer lease is a contract between a lessor and a lessee: ? for the use of personal property by an individual (natural person), ? to be used primarily for personal, family, or household purposes, ? for a period of more than 4 months (week-to-week and month-to-month leases do not meet this criterion, even though ...
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What are consumer leasing act reg. m required disclosures?
The regulation covers topics such as: Disclosure of lease schedule and payments. Early termination notices. Purchase option disclosures. Lease renegotiations, extensions, and assumptions.
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What does regulation M cover?
The SEC's Regulation M is designed to prevent manipulation by individuals with an interest in the outcome of an offering, and prohibits activities and conduct that could artificially influence the market for an offered security.
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What are the required lease disclosures for the lessor?
A lessor should also disclose the components of its aggregate net investment in sales-type leases and direct financing leases including: The carrying amount of its lease receivables. Its unguaranteed residual assets. Any deferred selling profit in direct financing leases (which is a reduction to the net investment)
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What is an open end vehicle lease?
Open-end leases have flexible structures that are as close to vehicle ownership as possible, only with the additional benefits of leasing. The terms include a minimum 12-month lease — technically, 367 days — followed by a month-to-month structure.
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What is the disclosure of the Consumer Leasing Act?
The Act requires that certain lease costs and terms be disclosed, imposes limitations on the size of penalties for delinquency or default and on the size of residual liabilities, and requires certain disclosures in lease advertising.
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