Sec. 1. (a) This article applies to a rental purchase agreement if:

(b) For the purposes of this article, the residence of a lessee is the address given by the lessee as the lessee's residence in any writing signed by the lessee in connection with a rental purchase agreement. Until the lessee notifies the lessor of a new or different residence address, the given residence address is presumed to be unchanged. As added by P.L.254-1987, SEC.1.

Sec. 2. Except as provided in this article, the provisions of:

(1) the Federal Consumer Credit Protection Act and regulations adopted under it;

(2) IC 24-4.5;

(3) IC 26-1-1-201(37);

(4) IC 26-1-2 concerning the creation of a security interest in property;

(5) IC 26-1-9; and

Sec. 3. Except as provided in this article, a lessor or lessee may not waive or agree to forego rights or benefits under this article. However this article does not prohibit the settlement of a claim under this article. As added by P.L.254-1987, SEC.1.

Sec. 4. Except as provided in this article, this article does not limit the application of the principles of law and equity to a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 5. Rental purchase agreements involving motor vehicles (as defined in IC 13-2-105(a)) are prohibited under this article. As added by P.L.138-1990, SEC.3. As Amended by P.L.134/63-2001, SEC.5.

Sec. 1. The definitions in this chapter apply throughout this article. As added by P.L.254-1987, SEC.1.

Sec. 2. "Department" has the meaning set forth in IC 24-4.5-6-103. As added by P.L.254-1987, SEC.1. As amended by P.L.14-1992, SEC 62.

Sec. 3. "Consummation" means the time or date on which the lessee signs a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 4. "Federal Consumer Credit Protection Act" has the meaning set forth in IC 24-4.5-1-302. As added by P.L.254-1987, SEC.1.

Sec. 5. "Lessee" means an individual who rents property under a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 6. "Lessor" means an individual or other person who, in the ordinary course of business

property under a rental purchase agreement. As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.4.

Sec. 7. "Period" means a day, week, month, or other subdivision of a year. As added by P.L.254-1987, SEC.1.

Sec. 8. "property" means any property that:

Sec. 9. "Rental purchase agreement" means an agreement between a lessor and a lessee that:

Sec. 1. The lessor shall reduce a rental purchase agreement to writing. As added by P.L.254-1987, SEC.1.

Sec. 2. A lessor shall disclose to a lessee the information required under section 3 of this chapter. However, if the Federal Consumer Credit Protection Act is amended to govern lease-purchase disclosures, the lessor may disclose the information required under the Federal Consumer Credit Protection Act instead of the disclosure required under this chapter. As added by P.L.254-1987, SEC.1.

Sec. 3. The lessor shall disclose the following:

(1) A brief description of the property sufficient to identify the property to the lessee and lessor.

(2) The total number, total amount, and timing of all rental payments, including taxes paid to or through the lessor, necessary to acquire ownership of the property.

(3) A statement that the lessee will not own the property until the lessee has:

(4) A statement that charges in addition to the total rental payment necessary to acquire ownership of the leased property may be imposed under the agreement and that the lessee should read the contract for an explanation of these charges.

(5) A brief explanation of all additional charges that may be imposed under the agreement. If a security deposit is required, the explanation must include an explanation of the conditions, under which the deposit will be returned to the lessee.

(6) A statement indicating who is responsible for property if it is lost stolen, damaged, or destroyed.

(7) A statement indicating that the value of lost, stolen, damaged, or destroyed property is its fair market value on the date that it is lost, stolen, damaged, or destroyed.

(8) A statement indicating whether the property is new or used. However, property that is new may be described as used.

(9) A statement that the lessee has an early purchase option to purchase the property at any time during the period that the rental purchase agreement is in effect. The statement must specify the price or the formula or other method for determining the price at which the property may be purchased.

(10) A brief explanation of the lessee's right to reinstate a rental purchase agreement and a description of the amount, or method of determining the amount of any penalty or other charge applicable under IC 24-7.5 to the reinstatement of a rental purchase agreement.

Sec. 4. (a) The disclosures required under section 3 of this chapter shall be stated:

(1) clearly and conspicuously; and

(2) in words and phrases that have a nontechnical meaning.

(b) Except as provided in the rule adopted by the department, the disclosure required under section 3 of this chapter may be included in the rental purchase agreement or in a separate writing that references the rental purchase agreement.

(c) Except as provided in the rules adopted by the department, the disclosures required under section 3 of the chapter may be provided in a different sequence than the sequence set forth in section 3 of this chapter.

(d) Additional information or explanation supplied by the lessor may not have the effect of circumventing, evading, or unduly complicating the information required to be disclosed. As added by P.L.254-1987, SEC.1; P.L172-1997, SEC.10.

Sec. 5. The lessor shall disclose all information required in section 3 of this chapter before the rental purchase agreement is consummated. As added by P.L.254-1987, SEC.1.

Sec. 6. Before any rental payment is due under the rental purchase agreement, the lessor shall obtain the signature of the lessee on the writing containing the terms of the rental purchase agreement and shall furnish the lessee with a copy of the written and signed rental purchase agreement. If there is more than one (1) lessee in a rental purchase agreement, delivery of a copy of the rental purchase agreement to one (1) of the lessees, is sufficient to comply with this section. As added by P.L.254- 1987, SEC.1.

Sec. 7. The terms of the rental purchase agreement shall be set forth in not less than 8 point type. As added by P.L.254-1987, SEC.1.

Sec. 8. The lessor shall furnish the lessee, without request by the lessee, a written receipt for each rental payment made:

(1) in cash; or

(2) by another method of rental payment that does not provide evidence of the rental payment. As added by P.L.254-1987, SEC.1.

                confessing judgment or enforcing payment

                 collecting payments or charges or rights of action in collecting payments or charges

                 lessee's claims or defenses

Sec. 1. At any time after the first rental payment is made, the lessee may acquire ownership of the property under the terms specified in the rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 2. A rental purchase agreement may not contain a provision that conflicts with the rights and duties imposed under this article. As added by P.L.254-1987, SEC.1.

Sec. 3. (a) A lessor may not accept an assignment of earnings from the lessee for payment or as security for payment for a charge arising under a rental purchase agreement.

(b) An assignment of earnings in violation of this section is unenforceable by the assignee of the earnings and revocable by the lessee.

(c) This section does not prohibit a lessee from authorizing deduction from the lessee's earnings if the authorization is revocable and is otherwise permitted by law. As added by P.L.254-1987, SEC.1.

Sec. 4. A lessor may not take or accept a power of attorney or other authorization from the lessee, or other person acting on the lessee's behalf, to waive service of process, confess judgment or enforce payment of money claimed by the lessor in violation of IC 34-2-25 or IC 34-2-26. As added by P.L.254-1987, SEC.1.

Sec. 5. A lessor may not require a lessee to waive any defense, counterclaim, or right of action against:

(1) the lessor; or

(2) a person acting on the lessor's behalf, as the lessee's agent; in collection of rental payments, or charges under the rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 6. A lessor may not require a lessee to authorize the lessor or a person acting on the lessor's behalf to unlawfully enter upon the lessee's premises or to commit any breach of the peace in the repossession of the property. As added by P.L.254-1987, SEC.1.

Sec. 7. A lessor may not require a lessee to authorize a prejudgment garnishment of the lessee's wages. As added by P.L.254-1987, SEC.1.

Sec. 9. (a) With respect to a rental purchase agreement, an assignee of the rights of the lessor is subject to all claims and defenses of the lessee against the lessor arising from the lease of property or services.

(b) A claim or defense of a lessee specified in subsection (a) may be asserted against the assignee under this section only if the lessee has made a good faith attempt to obtain satisfaction from the lessor with respect to the claim or defense and then only to the extent of the amount owing the assignee with respect to the sale or the lease of the property or services to which the claim or defense arose at the time the assignee has written notice of the claim or defense. Written notice of the claim or defense may be given before the attempts specified in this subsection. For the purpose of this subsection, written notice is any written notification other than notice on a coupon, billing statement or any other payment medium or material supplied by the assignee.

(c) An agreement may not limit or waive the claims or defenses of a lessee under this section. As added by P.L.254-1987, SEC.1. As amended by P.L.45-1995, SEC.18.

Sec. 10. (a) The lessee may pay the original lessor until the lessee receives written notification:

(b) A notification that does not reasonably identify the rights assigned is ineffective.

(c) If requested by the lessee, the assignee must take reasonable steps to furnish proof that the assignment has been made. Unless the assignee furnishes the proof, the lessee may pay the original lessor. As added by P.L.254-1987, SEC.1.

Sec. 11. Except as provided in section 1 of this chapter, a lessee may not be required to:

Sec. 12. A lessor may not require any of the following:

(1) The mandatory purchase of insurance by the lessee from the lessor.

(2) A penalty for early termination of a rental purchase agreement or for the return of an item at any point, except charges authorized under IC 24-7-5.

(3) A payment by a cosigner of the rental purchase agreement for any fees or charges that may not be imposed on the lessee as part of the rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 1. A lessor may contract for and receive an initial nonrefundable processing fee not to exceed ten dollars ($10). As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.6.

Sec. 2. A lessor may refuse to refund any part of a security deposit provided by a lessee only under the conditions authorized in the rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 3. (a) A lessor may contract for and receive a reasonable delivery charge if the lessor actually delivers the item to the lessee at a place other than the lessor's place of business.

(b) The delivery charge may be assessed in lieu of and not in addition to any initial processing charge imposed under section 1 of this chapter.

Sec. 4. (a) A lessor may contract for and receive a charge for picking up rental or other payments from the lessee if the lessor is required or requested to visit the lessee to pick up a payment at a place other than the lessor's place of business.

(b) A charge assessed under this section may not exceed ten dollars ($10).

Sec. 5. (a) The parties may contract for late charges or delinquency fees as follows:

(b) A late charge on a rental purchase agreement may be collected only once on any accrued rental payment, no matter how long it remains unpaid.

(c) A late charge may be collected at any time after it accrues.

(d) A late charge may not be assessed against a rental payment that is timely made, even though an earlier late charge has not been paid in full.

(e) The amount that may be assessed under subsection (a)(2) is as follows:

Sec. 6. A reinstatement fee imposed under IC 24-7-6-2 may not exceed five dollar ($5). As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.9.

Sec. 7. In addition to those charges allowable by this chapter the lessor may require the lessee to pay any state sales and use taxes levied in connection with a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 8. In addition to those charges allowable by this chapter, a lessor may contract for and receive from the lessee an amount equal to all official fees require to be paid under a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 10. If a lessee is liable to a lessor for the replacement cost of property leased under a rental purchase agreement, the lessor may not charge the lessee more than the fair market value for the property. As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.10.

Sec. 11. (a) In addition to the other charges permitted by this chapter, a lessor and a lessee may contract for a liability waiver fee in the following amounts:

(b) The selling or offering for sale of a liability damage waiver under this section is subject to the following prohibitions and requirements:

Sec. 1. A lessee who fails to make timely rental payments has the right to reinstate the original rental purchase agreement without losing any rights or options previously acquired under the rental purchase agreement if:

Sec. 2. (a) As a condition precedent to reinstatement of the rental purchase agreement, a lessor may charge:

(b) A reinstatement fee may not be charged under subsection (a)(2) unless the property has been returned to the lessor and is in the lessor's possession. As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.11.

Sec. 3. If reinstatement occurs under section 1 through 2 of this chapter, the lessor shall provide the lessee with either the same item leased by the lessee before reinstatement or a substitute item, of comparable quality and condition. If any information disclosed under IC 24-7-3-2 is inaccurate after the delivery of a substitute item, the lessor shall provide the lessee with a revised set of disclosures. If there is more than one (1) lessee in a rental purchase agreement, delivery of a copy of the revised set of disclosures to one (1) of the lessees is sufficient to comply with this section. As added by P.L.254-1987, SEC.1.

Sec. 4. (a) IC 24-4.5-5-105 and IC 24-4.5-5-106 apply to garnishment related to a rental purchase agreement.

(b) With respect to a debt arising from a rental purchase agreement, regardless of where made, the lessor may not attach unpaid earnings of the debtor by garnishment proceeding or other similar proceedings before the entry of a judgment in an action against the lessee arising from a rental purchase agreement. As added by P.L.254-1987, SEC.1.

Sec. 5. (a) If the court as a matter of law finds the rental purchase agreement or any clause of a rental purchase agreement to have been unconscionable at the time it was made the court may:

(b) If it is claimed or appears to the court that a rental purchase agreement or any clause of the rental purchase agreement may be unconscionable, the parties shall be afforded a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making the determination.

(c) For the purpose of this section, a rental payment, charge, or practice expressly permitted by this article is not in itself unconscionable. As added by P.L.254-1987, SEC.1.

Sec. 1. The department shall enforce this article. To carry out this responsibility the department may do the following:

(1) Receive and act on complaints, take action designed to obtain voluntary compliance with this article, or commence proceedings on the department’s own initiative.

(2) Issue and enforce administrative orders under IC 4-21.5.

(3) Counsel persons and groups on their rights and duties under this article.

(4) Establish programs for the education of consumers with respect to rental purchase agreement practices and problems.

(5) Makes studies appropriate to effectuate the purposes and policies of this article and make the results available to the public.

(6) Adopt rules under IC 4-22-2, including emergency rules under IC 4-22-2-37, to carry out this article.

(7) Maintain more than one (1) office within Indiana.

(8) Bring a civil action to restrain a person from violating this article and for other appropriate relief.

(9) Impose a civil penalty under IC 4-21.5 of not more than one thousand dollars ($1,000) for a violation of this article or a rule adopted under this article.

Sec. 2. (a) A person subject to this article shall make the books and records of the person reasonably available for inspection by the department or the department's representative.

(b) In administering this article and in order to determine compliance with this article, the department or the department's representative may examine the books and records of persons subject to the article and may make investigations of persons necessary to determine compliance. For this purpose, the department may administer oaths or affirmations, and, upon the department's own motion or upon request of any party may subpoena witnesses, compel their attendance, compel testimony, and require the production of any matter that is relevant to the investigation, including the existence, description, nature, custody condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence.

(c) If the person's records are located outside Indiana, the person shall, at the persons option, either make them available to the department at a convenient location in Indiana, or pay the reasonable and necessary expenses for the department or the department's representative to examine them at the place where they are maintained. The department may designate representatives, including comparable officials of the state in which the records are located, to inspect them on the department's behalf.

(d) Upon failure without lawful excuse to obey a subpoena or to give testimony and upon reasonable notice to all persons affected thereby, the department may not make public the name or identity of a person whose acts or conduct the department investigates under this section or the facts disclosed in the investigation, but this subsection does not apply to disclosures in actions or enforcement proceedings under this article.

(f) A lessor shall use generally accepted accounting principles and practices in keeping books and records so that the department or the department's representative may determine if the lessor is in compliance with this article or a rule adopted under this article.

(g) A lessor shall keep the lessor's books and records that pertain to a rental purchase agreement for at least two (2) years after the rental purchase agreement has terminated. As added by P.L.254-1987, SEC.1. As amended by P.L.1-1990, SEC.13; P.L.172-1997, SEC. 13.

Sec. 3. If it is claimed that a person has engaged in conduct subject to an order by the department or by a court under this chapter, the department may accept an assurance in writing that the person will not engage in the conduct in the future. If a person giving an assurance of discontinuance fails to comply with its terms, the assurance is evidence that before the assurance the person engaged in the conduct described in the assurance. As added by P.L.254-1987, SEC.1;P.L.172-1997, SEC. 14.

Sec. 1. A lessor shall file notification with the department:

Sec. 2. The notification required under section 1 of this chapter must state the following:

(1) The name of the lessor.

(2) The name in which business is transacted if different from subdivision (1).

(3) The address of the principal office, which may be outside Indiana.

(4) The address of all offices or stores, if any in Indiana at which rental purchase agreements are made.

(5) If rental purchase agreements are made in a place other than an office or retail store in Indiana, a brief description of the manner in which they are made.

(6) The address of the designated agent upon whom service of process may be made in Indiana.

Sec. 3. If information in a notification becomes inaccurate after filing, no further notification is required until the lessor is required to file a subsequent notification under section 1 of this chapter. As added by P.L.254-1987, SEC.1.

Sec. 4. (a) A lessor required to file a notification with the department under section 1 of this chapter shall pay to the department the following fees:

(b) In addition to the fee required under subsection (a)(2), if the department examines the books, and records of the lessor and requires more than three (3) days per location to conduct the examination, the lessor shall pay to the department a fee fixed by the department under IC 28-11-3-5 for each day or part of a day after the third day of the examination required for the department or the department's representative to conduct the department examination.

(c) The department may impose a fee of five dollars ($5) for each day a lessor is late in paying a fee under subsection (a). Notwithstanding the total number of places of business operated by a lessor, the department may not impose a late fee of more than five dollars ($5) for each day a lessor is paying a fee described under subsection (a)(2). As added by P.L.254-1987, SEC.1. As amended by P.L.138-1990, SEC.14; P.L.14-1992, SEC.64; P.L.45-1995, SEC.19.

Sec. 1. A lessor who knowingly gives false or inaccurate, information in a rental purchase agreement or a written disclosure required under this article commits a Class C misdemeanor. As added by P.L.254-1987, SEC.1.

Sec. 2. A lessor who knowingly fails to provide information that the lessor is required to disclose to a lessee or provide to the department under this article commits a Class C misdemeanor. As added by P.L.254-1987, SEC.1; P.L.172-1997, SEC. 16.

Sec. 3. A lessor who knowingly makes a charge under a rental purchase agreement that:

commits a Class C misdemeanor. As added by P.L.254-1987, SEC.1.

Sec. 4. (a) If a lessor violates this article and a lessee who is a party to the agreement prevails in the proceeding, the lessee may:

the amounts described in subsection (b).

(b) The lessee in an action described in subsection (a) may recover all of the following:

Sec. 5. It is a defense in a criminal proceeding under section 1 through 3 of this chapter or a civil proceeding under section 4 of this chapter that the lessor or an assignee of a lessor:

(1) failed to comply with this article as a result of a bona fide clerical error; and

(2) corrected the error after the date of execution of the rental purchase agreement.

Sec. 6 . It is a defense in a criminal proceeding under section 1 through 3 of this chapter or a civil proceeding under section 4 of this chapter that the lessor complied with a rule adopted by the department. As added by P.L.254-1987, SEC.1; P.L.172-1997, SEC. 17.

Sec. 7. Notwithstanding any other law, an action to recover the amounts described in section 4 of this chapter must be commenced within one (1) year after the action accrues. As added by P.L.254- 1987, SEC.1.