Date: October 1, 2000

To: Uniform Consumer Leasing Act Drafting Committee & Observers

From: Ralph Rohner, Reporter

Re: Draft and materials for October 2000 meeting

Here we go again!

Enclosed are four items:

1. A new (October 2000) draft of the Uniform Consumer Leases Act. This incorporates all the changes and suggestions made by the drafting Committee through its April 2000 meeting in Boston. I have continued to make some cosmetic and stylistic changes as well. All changes from the prior draft are accompanied by "10/00 Update" notations.

I have gone back through all of the Reporter's Notes to conform them to the current statutory text. I urge you to review these Notes and give me any and all comments, especially as to their accuracy and completeness.

I did not review or modify the "Prefatory Note" which was prepared for our first reading before the Conference in July 1999. That Note probably will need some updating before we go back to the Conference in summer 2001.

Later in this cover memo is a preliminary "issues list" for our meeting in Philadelphia. This identifies any issues of substance and significant language changes on which we need closure.

2. A separate memo to the Drafting Committee and observers concerning warranties in consumer leases. An earlier version of this memo was sent to the Drafting Committee in July and discussed in a telephone meeting with the Reporter in early August. No action was taken at that time. With the continuing deferral of final action on UCC Articles 2 and 2A, it may be time for us to act on our own.

3. A May 2, 2000 comment letter from Jerry Duffy, President of Jefferson Bank Leasing Services Division.

4. For the information of the Observers, a copy of my July 12 memo to the Drafting Committee concerning the agenda for our August 2 teleconference meeting.

Issues List:

102(a)(8) Definition of "holder": see Reporter's Note 8.c., re who is holder in securitization context.

102(a)(16) Definition of "single payment lease": language options suggested.

104(a) Does this mesh adequately with UCITA?

107(b) Additional phrase suggested.

107(c) Optional language offered.

201(d) Does "acting solely as" satisfy Committee concern?

203(c)(5) Does this adequately require itemization of gross capitalized cost?

204(a) First sentence re-written; two parallel notice rules collapsed into one.

206(a)(4) Clarify when holder may charge a fee?

304(a) Should we add text or Comment re relation to standard in UCC 2A?

304(b) Delete "Except. . ." clause? Substitute "uncollectible"?

304(e) Is this adequate to provide reciprocal attorney's fees?

306(b)(2) Sublease fee authorized; OK?

308 Warranties [see separate memo]

401 See Reporter's Notes 1-3 for rationale for barring gap liability.

403 See Reporter's Note 2 re electronic disabling.

404(d) Add "by a private sale"?

405(a)(2) & (3) Do we need a subsection (C) to complete the description of "constant yield method?

405(b) Do we need statutory text or Comment to clarify relation to UCC 2A?

405(c) Can this work as an absolute cap on ETC?

405(c)(3) Is the "plus the rent charge. . ." phrase redundant?

406 Are the timing rules right? Five days in (c)(1); 10 days in (d); 90/30 days in (e)(1); 20 days in (e)(2); 60 days in (e)(4)?

406(b)(2) Language options suggested re warranty recoveries affecting EWT charges.

406(e)(1)(B) Is this adequate re disclosure of inspector?

406(e)(2) Does new sentence re dealer as inspector satisfy Committee concern?

501(d) Amount of statutory damages? Fixed or variable?

502(a) Is this adequate for AG intervention in class action? If not, what additional detail is needed?

503(d) Statute of limitations for violations of UCLA?

504 Is "apparent on face of the lease" too narrow?