(a) Renegotiation. A renegotiation occurs when a consumer lease
subject to this part is satisfied and replaced by a new lease undertaken
by the same consumer. A renegotiation requires new disclosures, except
as provided in paragraph (d) of this section.
(b) Extension. An extension is a continuation,
agreed to by the lessor and the lessee, of an existing consumer lease
beyond the originally scheduled end of the lease term, except when
the continuation is the result of a renegotiation. An extension that
exceeds six months requires new disclosures, except as provided in
paragraph (d) of this section.
(c) Assumption. New disclosures are not required
when a consumer lease is assumed by another person, whether or not
the lessor charges an assumption fee.
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(d) Exceptions. New disclosures are not required
for the following, even if they meet the definition of a renegotiation
or an extension:
(1) A reduction in the rent charge;
(2) The deferment of one
or more payments, whether or not a fee is charged;
(3) The extension of a lease for not more
than six months on a month-to-month basis or otherwise;
(4) A substitution of leased
property with property that has a substantially equivalent or greater
economic value, provided no other lease terms are changed;
(5) The addition, deletion,
or substitution of leased property in a multiple-item lease, provided
the average periodic payment does not change by more than 25 percent;
or
(6) An agreement
resulting from a court proceeding.
