00                            SENATE BILL NO. 300                                                                         
01 "An Act relating to the handling of negative equity in motor vehicle transactions."                                     
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 45.10.220(5) is amended to read:                                                                   
04                 (5)  "principal balance" means the cash sale price of the goods or                                      
05       services that [WHICH] are the subject matter of a retail installment contract less the                        
06       amount of the buyer's down payment in money or goods or both, plus                                                
07                      (A)  the amounts for insurance and official fees included in the                               
08            contract if a separate identified charge is made and stated in the contract for                              
09            insurance and official fees; and                                                                         
10                      (B)  if the retail installment contract is for the sale of a                                   
11            motor vehicle, the amount, if any, that the seller agrees to pay to discharge                            
12            an outstanding obligation of the buyer under an existing motor vehicle                                   
13            agreement, loan, installment sales contract, or lease;                                                   
14    * Sec. 2. AS 45.25 is amended by adding a new section to article 5 to read:                                        
15            Sec. 45.25.630. Discharged amounts in motor vehicle leases. (a)                                            

01       Notwithstanding another provision of law to the contrary, if the amount to be paid by a                           
02       lessee under a motor vehicle lease includes a discharged amount, the inclusion of the                             
03       discharged amount in the amount to be paid under the lease is not a loan of the                                   
04       discharged amount and is not subject to any law that regulates the disclosure of                                  
05       interest, the charging of interest, the amount of interest rates, or the lending of money.                        
06            (b)  In this section, "discharged amount" means the amount, if any, that                                     
07       discharges an outstanding obligation of the lessee under an existing motor vehicle                                
08       agreement, loan, installment sales contract, or lease.