Chase to Return to Auto Leasing Business in Rhode Island Following State Legislature's Passage of Law Limiting Lessor Liability

    NEW YORK--July 8, 2003--Chase Manhattan Automotive Finance Corporation, a subsidiary of JPMorgan Chase Bank, which together with its affiliates is the largest non-captive purchaser of auto loans and leases in the United States, today announced it will return to the auto leasing business in Rhode Island immediately after the Governor signs a new bill limiting liability for auto leasing companies. Chase had exited the auto leasing business in Rhode Island last October due to the outdated law, known as "vicarious liability," holding leasing companies responsible for accidents involving their leasing customers. A Rhode Island court interpreted this law to apply to leasing companies and awarded a $28 million judgment against Chase.
    "We commend Senator Maryellen Goodwin and Representative Charlene Lima, who sponsored the new bill, Senator William Irons, Senate Majority Leader Joseph Montalbano, House Speaker William Murphy and House Majority Leader Gordon Fox, as well as the Rhode Island General Assembly for taking action to save auto leasing for Rhode Island's consumers and businesses," said Jeffrey Levine, general counsel for Chase Manhattan Automotive Finance Corporation. "We are keeping our promise that we would be back as soon as the law is changed and the Governor signs the new bill," Mr. Levine said. "However, since Rhode Island's new bill has a sunset period of one year and only limits lessor liability on leases up to 39 months, Chase will only offer its lease programs to Rhode Island dealers and residents with lease terms not to exceed 39 months and will have no choice but to exit the leasing business again in July, 2004, if the new law is not made permanent at that time," he said.
    Last month the Connecticut Legislature voted to amend its vicarious liability law limiting lessor liability and Chase immediately honored its commitment in Connecticut by reversing its decision to exit the leasing business there. New York is now the only state in the country with an unlimited vicarious liability law applicable to lessors. Chase exited the New York leasing business July 1, 2003 due to the inaction of the New York Legislature to pass a bill to eliminate vicarious liability for leasing companies. "Chase made a promise that as soon as these laws are repealed, Chase will re-introduce its lease programs to dealers and residents in New York, Connecticut and Rhode Island," said Mr. Levine. "We have made good on that promise in Rhode Island and Connecticut and will do the same in New York immediately after the law is repealed," he said. Chase remains fully committed to the leasing business in all other states.
    Chase Manhattan Automotive Finance Corporation (Chase Auto Finance), together with its affiliates, is the largest bank purchaser of automotive retail installment contracts and leases in the U.S. With a network of more than 12,000 affiliated auto dealers and two million customers nationwide, Chase Auto Finance has a portfolio in excess of $40 billion. Headquartered in Garden City, Long Island, Chase Manhattan Automotive Finance Corporation is a wholly owned subsidiary of JPMorgan Chase Bank. JPMorgan Chase Bank is a subsidiary of J.P. Morgan Chase & Co. .
    J.P. Morgan Chase & Co. is a leading global financial services firm with assets of $755 billion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, investment management, private banking and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers nationwide, and many of the world's most prominent corporate, institutional and government clients. Information about JPMorgan Chase is available on the internet at www.jpmorganchase.com