Section 340. Establishment of realized value at lease termination when purchase option not exercised; notice of intention to sell motor vehicle

1.  If an agreement is terminated early and there is no option
  to purchase the vehicle or the lessee does not exercise any option he or
  she may have to purchase the vehicle, or if the  lessee's  liability  at
  the scheduled end of the lease term is based upon the estimated residual
  value  of  the vehicle and the lessee does not exercise any option he or
  she may have to  purchase  the  vehicle,  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,  which  may  be  its  value in the customary wholesale
  market. A  lessee  whose  agreement  is  terminated  early  without  the
  exercise of a purchase option or whose liability at the scheduled end of
  the lease term is based upon the estimated residual value of the vehicle
  may  obtain,  at  his  or  her  expense,  a professional appraisal by an
  independent third party agreed to by the lessee and the  holder  of  the
  wholesale  value  which could be realized at sale of the leased vehicle.
  If a professional appraisal is obtained by such a lessee, the  appraised
  value  shall  be final and binding upon the parties and shall be used as
  the realized value in determining the liability of the lessee  at  early
  termination or at the scheduled end of the lease term.
    2.  If  an  agreement  is  terminated  early and there is no option to
  purchase the vehicle or the lessee does not exercise any  option  he  or
  she  may  have  to purchase the vehicle, or if the lessee's liability at
  the scheduled end of the lease term is based upon the estimated residual
  value of the vehicle and the lessee does not exercise any option  he  or
  she  may  have to purchase the vehicle, the holder shall give the lessee
  at least ten days written notice of its  intention  to  sell  the  motor
  vehicle.  A notice of intention to sell the vehicle need not be given if
  the holder and lessee have agreed  in  writing  to  the  amount  of  the
  lessee's  liability  under  the  retail lease agreement after the lessee
  returns the vehicle to the holder or the lessee has fully satisfied  his
  or  her  obligations  under the agreement.  A holder gives notice to the
  lessee under this subdivision when he or she delivers the notice to  the
  lessee  or  mails  the  notice  to  him  or her at his or her last known
  address.
    3. The notice of  intention  to  sell  the  vehicle  shall  set  forth
  separately any charges or sums due under the agreement and shall clearly
  and  conspicuously  state  that  the  lessee  will  be  liable  for  the
  difference between the estimated residual value of the vehicle  and  its
  realized  value,  if  such liability exists. The notice also shall state
  that the lessee has the right to submit a cash bid for the  purchase  of
  the vehicle.