P.R. Laws tit. 10, § 2425
A lessee who is not in arrears nor delinquent may settle the lease before the term originally established in the contract under the following circumstances:
(1) Through the payment of the present value of the contract as of the due date; in which case, the lessor shall not be able to collect interest on the portion of the cost of the chattel paid in advance. However, he/she may collect compensation not to exceed 5% of the balance paid in advance or that equal to one month’s installment, whichever is less.
The lessee shall have the right to be reimbursed for any other charge ascribed to unaccrued installments paid in advance.
Once the amounts mentioned in the above paragraph are paid, the lessor shall transfer ownership of the chattel to the lessee.
The use of the reimbursement method known as “Sum of digits or Rule 78”, is permitted in consumer leases that do not exceed a sixty (60) month contract.
(2) In the case of consumer leases, through the voluntary surrender of the leased chattel with the purpose of liquidating the debt of the chattel’s pending cash value, with the value obtained through the exercise of receiving bids, as provided in § 2424 of this title.
If the lessee, after the above mentioned process is begun, understands that said transaction is not convenient, he/she may opt, within the term of ten (10) days, after being informed of the highest bid and the pending balance in the lessor’s books, to recover the chattel and continue the original contract with the lessor until its expiration. If the lessee decides to cancel the advanced liquidation, he/she may continue the original contract. For this, he/she shall be bound to pay any reasonable expenses incurred by the lessor in exercising the request for bids for the leased chattel.
History —Aug. 13, 1994, No. 76, § 27, eff. 60 days after Aug. 13, 1994.