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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 160. Department of Consumer Credit |
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Chapter 10. Consumer Leasing |
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Subchapter 1. General Provisions |
SECTION 160:10-1-2. Definitions
Latest version.
- Except as otherwise specifically defined in this section, the definitions set forth in the Code are incorporated herein and made a part hereof. The following words and terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise:"Adjusted capitalized cost" equals the gross capitalized cost less the capitalized cost reduction, and is the amount used by the lessor in calculating the base periodic payment."Advertisement" means any commercial message in any newspaper, magazine, leaflet, flyer or catalog, on radio, television or public address system, in direct mail literature or other printed material, on any interior or exterior sign or display, in any window display, in any point-of-transaction literature or price tag which is delivered or made available to a lessee or prospective lessee in any manner whatsoever."Agricultural products" includes agricultural, horticultural, viticultural, and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, any and all products raised or produced on farms and any processed or manufactured products thereof."Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of agricultural products by a natural person who cultivates, plants, propagates, or nurtures those agricultural products, including but not limited to the acquisition of personal property and services used primarily in farming."Arrange for lease of personal property" means to provide or offer to provide a lease which is or will be extended by another person under a business or other relationship pursuant to which the person arranging such lease:(A) Receives or will receive a fee, compensation, or other consideration for such service; or(B) Has knowledge of the lease terms and participates in the preparation of the contract documents required in connection with the lease."Capitalized cost reduction" means the total amount of any rebate, cash payment, net trade-in allowance, and noncash credit that reduces the gross capitalized cost."Closed-end lease" means a consumer lease other than an open-end lease as defined in this section."Code" means the Uniform Consumer Credit Code beginning at §1-101 of Title 14A of the Oklahoma Statutes."Consumer lease" means a contract in the form of a bailment or lease for the use of personal property by a natural person primarily for personal, family, or household purposes, for a period exceeding four months and for a total contractual obligation not exceeding $45,000, whether or not the lessee has the option to purchase or otherwise become the owner of the property at the expiration of the lease. Unless the context indicates otherwise, in this chapter "lease" means "consumer lease." It does not include a lease that meets the definition of a credit sale in §2-105(4) of the Code, nor does it include a lease for business, commercial or agricultural purposes or a lease made to an organization."Consummation" means the time at which a lessee becomes contractually obligated on a lease transaction. A lease transaction shall be considered consummated at the time a contractual relationship is created between the lessor and lessee, irrespective of the time of the performance of either party."Department" means the Oklahoma State Department of Consumer Credit."Gross capitalized cost" means the amount agreed upon by the lessor and the lessee as the value of the leased property and any items that are capitalized or amortized during the lease term, including but not limited to taxes, insurance, service agreements, and any out-standing prior credit or lease balance."Lessee" means a natural person who leases under, or who is offered a consumer lease."Lessor" means a person who regularly leases, offers to lease, or arranges for the lease of personal property under a consumer lease. A person who has leased, offered, or arranged to lease personal property more than five times in the preceding calendar year or more than five times in the current calendar year is subject to the Code and this chapter."Open-end lease" means a consumer lease in which the lessee's liability at the end of the lease term is based on the difference between the residual value of the leased property and its realized value."Organization" means a corporation, trust, estate, partnership, cooperative, association, government, or governmental subdivision, agency or instrumentality."Period" means a day, week, month or other subdivision of a year."Person" means natural person or an organization."Personal property" means any property which is not real property under the law of the state where it is located at the time it is offered or made available for lease."Real property" means property which is real property under the law of the state in which it is located."Realized value" means(A) the price received by the lessor for the leased property at disposition,(B) the highest offer for disposition, or(C) the fair market value at the end of the lease term."Residual value" means the value of the leased property at the end of the lease term, as estimated or assigned at consummation by the lessor, used in calculating the base periodic payment."Security interest" and "security" mean any interest in property which secures payment or performance of an obligation. The terms include, but are not limited to, security interests under the Uniform Commercial Code, real property mortgages, deeds of trust, and other consensual or confessed liens whether or not recorded, mechanic's, materialman's, artisan's and other similar liens, vendor's liens in both real and personal property, any lien on property arising by operation of law, and any interest in a lease when used to secure payment or performance of an obligation."State" means any state, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States."Total lease obligation" equals the total of (1) the scheduled periodic payments under the lease, (2) any nonrefundable cash payment required of the lessee or agreed upon by the lessor and lessee or any trade-in allowance made at consummation, and (3) the estimated value of the leased property at the end of the lease term."Value at consummation" equals the cost to the lessor of the leased property including, if applicable, any increase or markup by the lessor prior to consummation.