Roberta Milton's car lease with First National Bank reached its termination on August 1. Roberta and the bank agreed to extend the lease on a month-to month basis without charging her a fee for doing so. What disclosure responsibilities does the bank have now?
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A. B. C. D.B
As per the given scenario, Roberta Milton's car lease with First National Bank was extended on a month-to-month basis without charging her any fee. In this situation, the bank has some disclosure responsibilities that it needs to fulfill.
The disclosure responsibilities of the bank in this situation would depend on the terms of the lease agreement and the applicable laws and regulations. Generally, financial institutions are required to provide certain disclosures to customers to ensure transparency and fairness in financial transactions.
Option A, "None are needed now," is not necessarily true. Even though Roberta's lease has been extended on a month-to-month basis, the bank may still have some disclosure requirements that it needs to meet.
Option B, "None, until after six months of the month-to-month lease," is also not entirely correct. The disclosure requirements would depend on the terms of the original lease agreement and any applicable laws and regulations. If the original lease agreement required certain disclosures to be made, then the bank would need to continue making those disclosures.
Option C, "The bank must make an entirely new initial disclosure," is not necessary in this situation. Since Roberta's lease has been extended on a month-to-month basis, there is no need for the bank to provide a new initial disclosure. However, the bank may still be required to provide periodic disclosures, such as monthly statements, that detail the terms of the lease.
Option D, "The bank must disclose the estimated residual value at the end of six months," is not necessarily true. The bank's disclosure requirements would depend on the terms of the original lease agreement and any applicable laws and regulations. If the original lease agreement required the bank to disclose the estimated residual value at the end of six months, then the bank would need to make that disclosure. However, if there is no such requirement, then the bank would not be obligated to provide that information.
In conclusion, the correct answer to this question would depend on the terms of the original lease agreement and any applicable laws and regulations. It is possible that the bank may have some disclosure responsibilities, such as providing monthly statements, even if Roberta's lease has been extended on a month-to-month basis without charging her a fee. Therefore, options A, B, and C are not necessarily correct. Option D may be correct if the original lease agreement requires the bank to disclose the estimated residual value at the end of six months.