CHAPTER 1. Application
24 7 1 1 Rental purchase agreements affected; lessee's residence
Sec. 1. (a) This article applies to a rental purchase agreement if:
(1) the rental purchase agreement is entered into in Indiana;
(2) the lessee is a resident of Indiana at the time a lessor offering the
rental purchase agreement solicits the rental purchase agreement or a
modification of the rental purchase agreement by any mode of communication;
or
(3) the lessee is a resident of Indiana at the time the lessor offering a
rental purchase agreement receives either a signed writing evidencing the
creation or modification of a rental purchase agreement or a written offer
from the lessee to enter into or modify a rental purchase agreement.
(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.
24 7 1 2 Inapplicable law
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 26-1-9.1; and
(6) rules adopted under the statutes described in subdivisions (2) through
(5);
do not apply to a rental purchase agreement.
As added by P.L.254-1987, SEC.1. Amended by P.L.57-2000, SEC.10.
24 7 1 3 Waiver of statutory protections; settlement
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.
24 7 1 4 Legal and equitable principles applicable
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.
24 7 1 5 Article does not apply; motor vehicles
Sec. 5. Rental purchase agreements involving:
(1) motor vehicles (as defined in IC 9-13-2-105(a)); or
(2) other titled property;
are prohibited under this article.
As added by P.L.138-1990, SEC.3. Amended by P.L.2-1991, SEC.85; P.L.63-2001,
SEC.5 and P.L.134-2001, SEC.5; P.L.213-2007, SEC.28; P.L.217-2007, SEC.27.
24-7-1-6 Exemption
Sec. 6. This article does not apply to the rental of a musical instrument
though an elementary of a secondary school.
CHAPTER 2. Definitions
24 7 2 1 Definitions applicable
Sec. 1. The definitions in this chapter apply throughout this article.
As added by P.L.254-1987, SEC.1.
24 7 2 2 "Department"
Sec. 2. "Department" has the meaning set forth in IC 24-4.5-6-103.
As added by P.L.254-1987, SEC.1. Amended by P.L.14-1992, SEC.62.
24 7 2 3 "Consummation" defined
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.
24 7 2 4 "Federal Consumer Credit Protection Act" defined
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.
24 7 2 5 "Lessee" defined
Sec. 5. "Lessee" means an individual who rents property under a rental
purchase agreement.
As added by P.L.254-1987, SEC.1.
24 7 2 6 "Lessor" defined
Sec. 6. "Lessor" means an individual or other person who, in the ordinary
course of business:
(1) leases;
(2) offers to lease;
(3) arranges for the leasing of; or
(4) accepts assignments of leases of;
property under a rental purchase agreement.
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.4.
24 7 2 7 "Period" defined
Sec. 7. "Period" means a day, week, month, or other subdivision of a year.
As added by P.L.254-1987, SEC.1.
24 7 2 8 "Property" defined
Sec. 8. "Property" means any property that:
(1) is not real property or intangible personal property under Indiana law;
and
(2) is made available under a rental purchase agreement.
As added by P.L.254-1987, SEC.1.
24 7 2 9 "Rental purchase agreement" defined
Sec. 9. (a) .Rental purchase agreement. means an agreement between a lessor
and a lessee that:
(1) provides for the use of personal property by an individual primarily for
personal, family, or household purposes;
(2) has an initial period of four (4) months or less;
(3) is automatically renewable with each rental payment; and
(4) permits the lessee to become the owner of the property.
(b) The term includes:
(1) an agreement; or
(2) a transaction;
that the director determines to be a rental purchase agreement, despite
efforts by a person to structure the transaction in a manner that the
director determines is being used to avoid application of this article.
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.5;
P.L.213-2007, SEC.29; P.L.217-2007, SEC.28.
CHAPTER 3. Disclosure; Form of Rental Purchase Agreement
24 7 3 1 Written agreement
Sec. 1. The lessor shall reduce a rental purchase agreement to writing.
As added by P.L.254-1987, SEC.1.
24 7 3 2 Alternate disclosure requirements
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 disclosures required under this chapter.
As added by P.L.254-1987, SEC.1.
24 7 3 3 Disclosures required
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:
(A) made the number of rental payments and the total of rental payments
necessary to acquire ownership of the property; or
(B) exercised an early purchase option.
(4) A statement that charges in addition to the total rental payments
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.
As added by P.L.254-1987, SEC.1.
24 7 3 4 Form of disclosures
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 rules adopted by the department, the
disclosures 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 this chapter may be provided in a
different sequence than the sequence set forth in section 3 of this chapter.
(d) Additional information or explanations 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. Amended by P.L.172-1997, SEC.10.
24 7 3 5 Time of disclosure
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.
24 7 3 6 Copy of written and signed agreement to lessee
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.
24 7 3 7 Size of print
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.
24 7 3 8 Rental payment receipts
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.
CHAPTER 4. Limitations
24 7 4 1 Ownership acquisition
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.
24 7 4 2 Contractual abridgement of rights and duties
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.
24 7 4 3 Assignment of earnings as payment
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 deductions 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.
24 7 4 4 Acceptance of authorization on behalf of lessee waiving service of
process
confessing judgment or enforcing payment
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 34-54-3 or IC 34-54-4.
As added by P.L.254-1987, SEC.1. Amended by P.L.1-1998, SEC.130.
24 7 4 5 Required waiver of lessee's defenses, counterclaims or rights of
action in
collecting payments or charges or rights of action in collecting payments
or charges
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.
24 7 4 6 Repossession limited
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.
24 7 4 7 Prejudgment garnishment
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.
24-7-4-8 Negotiable instrument as evidence of obligation
(Repealed by P.L.45-1995, SEC.33.)
24 7 4 9 Assignee of lessor's rights; lessee's rights against assignee;
contractual abridgement of lessee's claims or defenses
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 purposes
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. Amended by P.L.45-1995, SEC.18.
24 7 4 10 Notice and proof of assignment
Sec. 10. (a) The lessee may pay the original lessor until the lessee
receives written notification:
(1) that assignment of the rights to rental payments under the rental
purchase agreement has occurred; and
(2) of the person to whom rental payments are to be made.
(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.
24 7 4 11 Additional payments
Sec. 11. Except as provided in section 1 of this chapter, a lessee may not
be required to:
(1) make any payment in addition to regular rental payments in order to
acquire ownership of the property; or
(2) pay rental payments totaling more than the cost to acquire ownership
stated in the rental purchase agreement.
As added by P.L.254-1987, SEC.1.
24 7 4 12 Mandatory insurance; early termination of agreement or item return
penalties; fees or charges imposed on cosigner
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.
CHAPTER 5. Additional Charges
24 7 5 1 Nonrefundable processing fee
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. Amended by P.L.138-1990, SEC.6.
24 7 5 2 Security deposit refunds
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.
24 7 5 3 Delivery charges
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.
As added by P.L.254-1987, SEC.1.
24 7 5 4 Rental payment pick up charges
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).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.7.
24 7 5 5 Late charges or delinquency fees
Sec. 5. (a) The parties may contract for late charges or delinquency fees as
follows:
(1) For rental purchase agreements with monthly renewal dates, a late charge
not exceeding eight dollars ($8) may be assessed on any rental payment not
made within five (5) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental purchase
agreement.
(2) For rental purchase agreements with weekly or biweekly renewal dates, a
late charge not exceeding the amount specified in subsection (e) may be
assessed on any rental payments not made within two (2) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental purchase
agreement.
(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:
(1) Three dollars ($3) for any payment not greater than twenty dollars
($20).
(2) Five dollars ($5) for any payment greater than twenty dollars ($20).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.8;
P.L.14-1992, SEC.63; P.L.213-2007, SEC.30; P.L.217-2007, SEC.29.
24 7 5 5.5 Charge for dishonored checks, negotiable orders, or share drafts
Sec. 5.5. A lessor may contract for and receive a charge not to exceed
twenty-five dollars ($25) for each return by a bank or other depository
institution of a dishonored check, negotiable order of withdrawal, or share
draft issued by the lessee.
As added by P.L.213-2007, SEC.31; P.L.217-2007, SEC.30.
24 7 5 6 Reinstatement fee
Sec Sec. 6. A reinstatement fee imposed under IC 24-7-6-2 may not exceed
five dollars ($5).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.9.
24 7 5 7 Sales and use taxes
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.
24 7 5 8 Official fees
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 required to be paid under a rental purchase agreement.
24 7 5 9 Reserved
Sec. 9. Reversed.
24 7 5 10 Replacement cost
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.138-1990, SEC.10.
24 7 5 11 Liability waiver fee
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:
(1) In the case of a rental purchase agreement with weekly or biweekly
renewal dates, the liability waiver fee may not exceed the greater of:
(A) ten percent (10%) of a periodic lease payment due; or
(B) two dollars ($2).
(2) In the case of a rental purchase agreement with monthly renewal dates,
the liability may not exceed the greater of:
(A) ten percent (10%) of a periodic lease payment due; or
(B) five dollars ($5).
(b) The selling or offering for sale of a liability damage waiver under this
section is subject to the following prohibitions and requirements:
(1) A lessor may not sell or offer to sell a liability damage waiver unless
all restrictions, conditions, and exclusions are:
(A) printed in the rental purchase agreement, or in a separate agreement, in
8 point type or larger; or
(B) written in ink or typewritten in or on the face of the rental purchase
agreement in a blank space provided therefor.
(2) The liability damage waiver may exclude only loss or damage to the
property that is the subject of the rental purchase agreement caused by
moisture, scratches, mysterious disappearance, vandalism, abandonment of the
property, or any other damage intentionally caused by the lessee or that
results from the lessee's willful or wanton misconduct.
(3) The liability damage waiver agreement must include a statement of the
total charge for the liability damage waiver. The liability damage waiver
agreement must display in 8 point boldface type the following:
"NOTICE: THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A LIABILITY DAMAGE
WAIVER TO COVER YOUR RESPONSIBILITY FOR DAMAGE TO THE PROPERTY. BEFORE
DECIDING WHETHER TO PURCHASE THE LIABILITY DAMAGE WAIVER, YOU MAY WISH TO
DETERMINE WHETHER YOUR OWN HOMEOWNERS OR CASUALTY INSURANCE AFFORDS YOU
COVERAGE FOR DAMAGE TO THE RENTAL PROPERTY, AND THE AMOUNT OF THE DEDUCTIBLE
UNDER YOUR OWN INSURANCE COVERAGE. THE PURCHASE OF THIS LIABILITY DAMAGE
WAIVER IS NOT MANDATORY AND MAY BE DECLINED.".
(4) The restrictions, conditions, and exclusions of the liability damage
waiver must be disclosed on the agreement or on a separate agreement, sheet,
or handout given to the lessee before entering into the rental purchase
agreement. The separate contract, sheet, or handout must be signed or
otherwise acknowledged by the lessee as being received before entering into
the rental purchase agreement.
(5) The lessor shall keep and maintain records as prescribed by the director
of the department. The director of the department may inspect the records
and determine whether the rates charged under this section are fair and
reasonable.
As added by P.L.42-1993, SEC.17. Amended by P.L.172-1997, SEC.11.
CHAPTER 6. Reinstatement; Garnishment; Unconscionable
Agreement
24 7 6 1 Reinstatement of original agreement conditions
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:
(1) subsequent to having failed to make a timely rental payment, the lessee
promptly surrenders the property to the lessor, if requested by the lessor;
and
(2) not more than sixty (60) days elapse after the lessee returns the
property.
As added by P.L.254-1987, SEC.1.
24 7 6 2 Condition precedent to reinstatement; charges
Sec. 2. (a) As a condition precedent to reinstatement of the rental purchase
agreement, a lessor may charge:
(1) the outstanding balance of any accrued rental payments and delinquency
charges;
(2) a reinstatement fee not exceeding the amount allowed under IC 24-7-5-6;
and
(3) delivery charges not exceeding the amounts allowed under IC 24-7-5-3 if
redelivery of the item is necessary.
(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. Amended by P.L.138-1990, SEC.11.
24 7 6 3 Same or substituted leased item upon reinstatement; revised
disclosures
Sec. 3. If reinstatement occurs under sections 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.
24 7 6 4 Pre judgment garnishment proceeding
Sec. 4. (a) IC 24-4.5-5-105 and IC 24-4.5-5-106 apply to garnishments
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 proceedings 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.
24 7 6 5 Unconscionable agreements
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:
(1) refuse to enforce the rental purchase agreement;
(2) enforce the remainder of the rental purchase agreement without the
unconscionable clause; or
(3) limit the application of any unconscionable clause to avoid an
unconscionable result.
(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 purposes 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.
CHAPTER 7. Enforcement, Adjustment in Maximum Fees
24 7 7 1 Enforcement by administrator
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) Make 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
4-22-2-37.1, 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.
As added by P.L.254-1987, SEC.1. Amended by P.L.1-1990, SEC.245;
P.L.138-1990, SEC.12; P.L.172-1997, SEC.12.
24 7 7 2 Examination of books and records; investigations; subpoenas; court
orders
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 person's 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 apply to a court for an order compelling compliance.
(e) 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. Amended by P.L.138-1990, SEC.13;
P.L.172-1997, SEC.13.
24 7 7 3 Assurance of discontinuance of misconduct
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. Amended by P.L.172-1997, SEC.14.
24 7 7 4 Repealed
(Repealed by P.L.138-1990, SEC.15.)
CHAPTER 8. Registration of Lessor
24 7 8 1 Lessor's notification of administrator
Sec. 1. A lessor shall file notification with the department:
(1) within thirty (30) days after soliciting or entering into a rental
purchase agreement subject to this article; and
(2) before February 1 in each subsequent year that the lessor solicits or
enters into a rental purchase agreement subject to this article.
As added by P.L.254-1987, SEC.1. Amended by P.L.172-1997, SEC.15.
24 7 8 2 Contents of notification
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.
As added by P.L.254-1987, SEC.1.
24 7 8 3 Corrective notification
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.
24 7 8 4 Filing and examination fees
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:
(1) A fee fixed by the department under IC 28-11-3-5 with the initial
notification filed with the department.
(2) A fee fixed by the department under IC 28-11-3-5 for each place of
business operated by the lessor on December 31 of the preceding year with
each annual notification subsequently filed with the department.
(b) In addition to the fee required under subsection (a)(2), if the
department examines the books and records of the lessor, the lessor shall
pay to the department all reasonably incurred costs of the examination in
accordance with the fee schedule adopted by the department under IC
28-11-3-5.
(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 late in paying a fee described under subsection (a)(2).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.14;
P.L.14-1992, SEC.64; P.L.45-1995, SEC.19; P.L.10-2006, SEC.23 and
P.L.57-2006, SEC.23.
CHAPTER 9. Violations; Civil Damages
24 7 9 1 False or inaccurate information in agreements or disclosures;
offense
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.
24 7 9 2 Failure to provide required information; offense
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. Amended by P.L.172-1997, SEC.16.
24 7 9 3 Unauthorized or excessive charges; offense
Sec. 3. A lessor who knowingly makes a charge under a rental purchase
agreement that:
(1) is not authorized under this article; or
(2) exceeds the amount authorized under this article;
commits a Class C misdemeanor.
As added by P.L.254-1987, SEC.1.
24 7 9 4 Civil damages recoverable by lessee
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:
(1) recover from the lessor committing the violation; or
(2) set off in a counterclaim in any action by the lessor committing the
violation;
the amounts described in subsection (b).
(b) The lessee in an action described in subsection (a) may recover all of
the following:
(1) Reasonable attorney's fees, as determined by the court.
(2) Court costs.
(3) The greater of:
(A) the actual damages incurred by the lessee as a result of the violation;
(B) three hundred dollars ($300); or
(C) twenty-five percent (25%) of the total rental payments necessary to
acquire ownership of the property leased under the agreement.
As added by P.L.254-1987, SEC.1.
24 7 9 5 Defenses; clerical error and correction
Sec. 5. It is a defense in a criminal proceeding under sections 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.
As added by P.L.254-1987, SEC.1.
24 7 9 6 Defenses; compliance with administrator's rule
Sec. 6. It is a defense in a criminal proceeding under sections 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. Amended by P.L.172-1997, SEC.17.
24 7 9 7 Limitation of actions
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.
|
|
