(815 ILCS 636/40)
Sec. 40.
Establishment of realized value at lease termination when
purchase option not exercised.
(a) If a consumer lease is terminated early and the lessee is not in default
and does not
exercise a purchase option or if the lessee's liability at the scheduled end
of the lease term is based upon the vehicle's residual value and the lessee
does not exercise a purchase option, 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. The realized value
shall be final and binding upon the parties and shall be
used as the realized value in determining the lessee's liability at early
termination or at the scheduled end of the lease term. Nothing in this Section
shall be deemed to prohibit the lessee and the lessor from agreeing upon the
vehicle's realized value or the method of determining the vehicle's realized
value, in which case the value agreed upon shall be
final and binding upon the parties and shall be used as the realized value in
determining the lessee's liability at early termination or at the
scheduled end of the lease term.
(b) In the event of a total loss of the vehicle prior to the end of
the lease term occasioned by its theft, physical damage, or other occurrence as
specified in the consumer lease, the realized value will be deemed to be the
sum of the amount received by the holder from the lessee's insurance company
or from any other party in payment of the loss and the amount received by the
holder of the lessee's
deductible under the lessee's insurance policy.
(Source: P.A. 89-625, eff. 1-1-97.)
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