FARMINGTON HILLS, Mich. -- Chrysler Financial, Chase Auto Finance, Subaru Motors Finance and Ford Motor Credit have each announced they will stop leasing in Rhode Island beginning Aug. 1 if the current vicarious liability legislation passed two years ago lapses without being renewed by June 30.

If the current law lapses, Rhode Island will be left with an unlimited vicarious liability law that holds the "owner" of the motor vehicle responsible for personal injury and property damage caused by the driver of the leased vehicle. The finance company, which holds the title in leasing, faces significant exposure under the unlimited vicarious liability statutes.

Elaine Litwer, legislative coordinator for the National Vehicle Leasing Association and owner of El Leasing Corp. in New York, said the association is willing to accept another extension of the bill until 2007.

In 2004, Chrysler Financial ceased leasing in the state of New York due to the state's unlimited vicarious liability law.

"Chrysler Financial strongly supports the industry effort to renew the vicarious liability legislation that is two years old," said William F. Jones Jr., vice president of Chrysler Financial, the finance arm of DaimlerChrysler Services North America LLC. "If the current legislation is allowed to expire, Chrysler Financial will be forced to exit the Rhode Island leasing market based on significant financial exposure if we continue to offer leasing."

Update: June 28

The state House of Representatives voted to extend the legislation, but it is awaiting a vote in the Senate.

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