§ 63-16 Leasing of Medallions from Medallion Owners.
RCNY § 63-16
(a)Lease must be in writing.
(1)All lease agreements between Agents and Medallion owners, including any amendments to such leases, must be in writing and signed by the Agent and Medallion or Taxicab owner. Electronic signatures are permissible for electronic leases.
(2)A copy of the fully executed lease must be provided to the Medallion or Taxicab owner upon lease execution and upon the owner's request. 35 RCNY § 63-16(a) Fine: $500 per missing leaseAppearance NOT REQUIRED (b) Terms. Each lease between an Agent and a Medallion owner must provide: (1) The amount and frequency of lease payments.
(i)For each cost and fee that will be charged, the lease must provide in clear and unambiguous language an explanation of the cost or fee.
(ii)For each cost and fee that may be charged, the lease must provide in clear and unambiguous language an explanation of the conditions that will result in the imposition of such cost or fee.
(iii)If a cancellation fee is included in the lease, the cancellation fee must be reasonable and the lease must specify the minimum prior notice that must be provided by the owner to avoid the cancellation fee.
(3)All leases must include the following provisions: (i) The Agent is responsible for paying to New York City and New York State agencies all taxes and surcharges collected on behalf of a Medallion Owner during the periods that such Medallion is leased by the Agent. Failure to pay any taxes or surcharges collected by the Agent should be reported by the Medallion Owner to TLC.
(4)If the lease allows the Agent to change the lease payment amount, the agreement must include the following: (i) The Agent must provide the owner with no less than 60 days' notice before changing the lease payment amount.
(c)Timely Payment. Agents must make all lease payments as required by the lease agreement.
(d)No Overcharges. Agents may not charge or request any additional payment or any fee in excess of any amount set forth in the lease agreement.
(e)No interest in Medallion. A lease agreement may not grant the Agent any rights in or to a Medallion other than the dispatch and operation of the Taxicab to which the Medallion is affixed for the period specified. A lease agreement may not grant an Agent a right or option to purchase. 35 RCNY § 63-16(b) - (e) Fine: First violation $500.Second and subsequent violations: $1,000 and/or suspension of the Agent for up to thirty days. In addition to the penalty payable to the Commission, restitution to the owner, equal to the excess or unauthorized charge that was charged to the owner.Appearance NOT REQUIRED (f) Owner Receipts. Agents must provide owners with receipts for all payments, deductions and charges, with applicable lease provision cited for any deduction or charge. 35 RCNY § 63-16(f) Fine: $200Appearance REQUIRED (g) Annual Accounting. Agents must provide to owners an annual accounting of all taxes, fees, insurance and other costs paid or remitted on behalf of the Medallion owner. 35 RCNY § 63-16(f) Fine: $500Appearance NOT REQUIRED (h) Maintenance of Records. An Agent must maintain for a period of three years from the date a lease agreement with a Medallion owner expires or is cancelled: (1) A copy of the executed lease and any lease amendments; (2) Records of all itemized lease payments paid to owners; (3) Records of all itemized payments received from owners; and (4) Copies of all annual accountings prepared by the Agent for the owner. 35 RCNY § 63-16(h) Fine: $100 for each missing itemAppearance REQUIRED (Added City Record 2/12/2020, eff. 3/13/2020)
