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American Honda Finance Corp. to Continue Leasing Operations in Connecticut and Rhode Island

States Change Archaic Vicarious Liability Laws

TORRANCE, Calif., July 15 -- American Honda Finance Corporation (AHFC), a wholly owned subsidiary of American Honda Motor Co., Inc., today announced that AHFC and its affiliates will continue to offer vehicle lease contracts in the states of Connecticut and Rhode Island. This decision follows action by Connecticut and Rhode Island legislators to amend archaic state laws that hold auto lessors liable for the actions of lessees and subject to unreasonable damages in vicarious liability lawsuits.

"We are grateful that Connecticut and Rhode Island legislators have voted to change their vicarious liability laws, which have created significant uncertainty for auto leasing companies," said Steve Smith, senior vice president of American Honda Finance Corp. "Although the Rhode Island action provides a temporary one-year solution, we are hopeful that a permanent solution can be agreed to in the next legislative session."

The new provision requires that lessees maintain liability insurance coverage of at least $100K/300K/50K, which are the current AHFC requirements.

"The action by legislators will enable Honda to continue providing this popular product to Connecticut and Rhode Island consumers," added Smith. "We hope that New York will soon follow suit."

AHFC and its affiliates still plan to suspend all vehicle leasing on July 31st to residents of the state of New York, the only other state in the country that maintains a vicarious liability statute. Honda and other leasing companies have been working to abolish archaic vicarious liability laws that allow financial institutions to be sued in cases against lessees who are found negligent in an auto accident.