* § 399-w. Total loss notice and waiver of the gap amount for\nnon-motor vehicle retail lease agreements. 1. If a non-motor vehicle\nretail lease agreement provides that the lessee shall be responsible\nupon a total loss of the goods which are the subject of the agreement\noccasioned by theft, confiscation or physical damage for the gap amount,\nthe lessor, prior to the execution of the agreement, shall by a notice\non a separate document conspicuously disclose that fact and the\nobligations for which the lessee would remain liable in the event of a\ntheft, confiscation or total loss of the goods. If the lessor is\nrequired under subdivision two of this section to offer to waive its\ncontractual right to hold the lessee liable for the gap amount in the\nevent of a total loss of the goods occasioned by theft or physical\ndamage, the notice shall also: (a) state that for a separate charge\ndisclosed in the notice the lessor will waive its contractual right to\nhold the lessee liable for the gap amount in the event of a total loss\nof the goods occasioned by theft or physical damage; (b) contain a\nprovision informing the lessee that he or she may as an alternative to\npurchasing a waiver, be able to purchase insurance covering the gap\namount from an insurance company which has been licensed by the\nsuperintendent of financial services to write non-motor vehicle lessee\ngap insurance in this state; and (c) contain a provision permitting the\nlessee to indicate whether he or she wants the lessor to waive its\ncontractual right to hold the lessee liable for the gap amount in the\nevent of a total loss of the goods occasioned by theft or physical\ndamage. The notice shall be signed by the lessee. The lessor or assignee\nshall provide a copy of the signed notice to the lessee, and shall\nmaintain a copy in the lessor's or assignee's files for at least the\nterm of the lease. Failure to provide the notice and to obtain the\nlessee's signature as required by this subdivision shall invalidate any\nprovision of the agreement which otherwise would obligate a lessee to\npay the gap amount to the lessor or lessor's assignee, after a total\nloss of the goods occasioned by theft, confiscation or physical damage.\nNo retail lease agreement shall be conditioned upon the lessee's\nobtaining of non-motor vehicle lessee gap insurance as set forth in\nsubparagraph (D) of paragraph twenty-six of subsection (a) of section\none thousand one hundred thirteen of the insurance law.\n 2. If the retail lease agreement provides that the lessee shall be\nresponsible upon a total loss of the goods occasioned by theft or\nphysical damage for the gap amount, the lessor, prior to the execution\nof the agreement, shall offer to waive its contractual right to hold the\nlessee liable for the gap amount in the event of a total loss of the\ngoods occasioned by theft or physical damage, only if non-motor vehicle\nlessor gap insurance coverage is available to the lessor or the\nanticipated assignee and such coverage is obtained from a\nproperty/casualty insurance company, which has been licensed by the\nsuperintendent of financial services of this state to write non-motor\nvehicle lessor gap insurance in this state. This offer may be made\ncontingent upon the payment by the lessee of a separate charge that\nshall not exceed the cost of lessor gap insurance covering the retail\nlease transaction plus an administrative fee not to exceed ten dollars.\nNothing contained in this section shall be construed to authorize a\nwaiver, in connection with a transaction with respect to which lessor\ngap insurance has not been obtained, of a contractual right to hold the\nlessee liable for the gap amount in the event of a total loss of the\ngoods occasioned by theft or physical damage.\n 3. A lessor shall not be obligated under subdivision two of this\nsection to offer to waive its contractual right to hold the lessee\nliable for the gap amount if, during the current calendar year
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