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Second: Mechanism for Settling a Vehicle Finance Lease Contract in the Event of Total Loss

No: 498600000099 Date(g): 1/1/2020 | Date(h): 6/5/1441 Status: In-Force

Translated Document

Effective from Jan 01 2020 - Dec 31 2019
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A. Unconsumed Amount of the Advance Lease Payment:

Unconsumed Amount=(Financing Period–Number of Last Due Payment)×( Advance Lease Payment \Financing Period ​)

 

B. Difference Between the Remaining Principal Amount and the Insurance Compensation:

Difference=Remaining Principal Amount (including the last payment, if any)−Insurance Compensation

 

  • If the amount is greater than zero, multiply by (Lessee’s Responsibility Percentage for the Accident).
  • If the amount is less than or equal to zero, it is taken as is.

 

C. Net Settlement Amount:

=Unconsumed Amount of the Advance Lease Payment (A)−Difference Between Remaining Principal Amount and Insurance Compensation (B)

 

D. Action Regarding the Net Settlement Amount:

  • If the net settlement amount is greater than zero, the lessee is compensated with the full net settlement amount - any outstanding amounts owed by the lessee before the total loss, if applicable.
  • If the net settlement amount is less than zero, the lessor is entitled to claim the net settlement amount from the lessee + any outstanding amounts owed by the lessee before the total loss, if applicable.