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Michigan Rental-Purchase Agreement Act |
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Effective Since:1985
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section of the bill |
| 445.951 |
Short title. |
| 445.952 |
Definitions. |
|
445.953 |
Rental-purchase
agreement; form; contents; information requirements; separate form;
disclosure of additional information. |
|
445.954 |
Amount necessary to
acquire ownership; amount applied toward purchase price. |
|
445.955 |
Advertising
requirements; requirements as to items displayed or offered under
rental-purchase agreement. |
|
445.956 |
Prohibited
provisions in rental-purchase agreement. |
|
445.957 |
Prohibited
requirements. |
|
445.958 |
Failure to make
timely periodic payments; rights of lessee; reinstatement fee; delivery fee;
same or substitute item provided on reinstatement. |
|
445.959 |
Temporary or
permanent injunction; venue; costs; civil penalty; notice of intended
action; opportunity to cease and desist or to confer with attorney general;
notice of alleged violation; civil penalty for knowing violation. |
|
445.960 |
Assurance of
discontinuance. |
| 445.961 |
Subpoena; service
and contents of notice; extension of reporting date; modification or setting
aside of notice and subpoena; confidentiality; disclosures; disclosure as
misdemeanor; penalty. |
|
445.962 |
Compliance with
terms of notice; prohibited conduct; civil penalty; petition for order to
enforce compliance; violation of final order as civil contempt; enjoining
person from doing business in state. |
|
445.963 |
Class action for
actual damages; order; appointment of receiver; sequestration of assets;
cost of notice; effect of bona fide error; limitations. |
|
445.964 |
Action for
declaratory judgment or injunction; action for actual damages and attorneys'
fees; class action for actual damages; order; appointment of receiver;
sequestration of assets; cost of notice to class; effect of bona fide
effort; limitations; defense or counterclaim. |
|
445.965 |
Mailing copy of
complaint, judgment, decree, or order to attorney general. |
|
445.966 |
Payment of filing
fees. |
|
445.967 |
Aid and assistance
of law enforcement officer. |
|
445.968 |
Investigation and
prosecution by prosecuting attorney. |
|
445.969 |
Other causes of
action not affected; inconsistent ordinance or regulation prohibited. |
|
445.970 |
Example of form
satisfying requirements of act. |
|
| Bill Text |
445.951 Short title. [M.S.A. 19.418(61) ]
Sec. 1. This act shall be known and may be cited as the “rental-purchase
agreement act”.
445.952 Definitions. [M.S.A. 19.418(62) ]
Sec. 2. As used in this act: (a) “Lessee” means a person who leases property
pursuant to a rental-purchase agreement.
(b) “Lessor” means a person who, in the ordinary course of business, regularly
leases, offers to lease, or arranges for the leasing of property under a
rental-purchase agreement.
(c) “Period” means a day, week, 1 month, or other subdivision of a year.
(d) “Rental-purchase agreement” means an agreement for the use of personal
property by a lessee primarily for personal, family, or household purposes, for
an initial period of 4 months or less that is automatically renewable with each
payment after the initial period and that permits the lessee to become the owner
of the property. Rental-purchase agreements shall not include any of the
following: (i) A lease or agreement which constitutes a credit sale as defined
in 12 C.F.R. 226.2(a)(16) and section 1602(g) of the truth in lending act, 15
U.S.C. 1602(g).
(ii) A lease which constitutes a consumer lease as defined in 12 C.F.R.
213.2(a)(6).
(iii) Any lease for agricultural, business, or commercial purposes.
(iv) Any lease made to an organization.
(v) Any lease of money or intangible personal property.
(vi) A lease or agreement which constitutes a retail installment transaction as
defined in section 2 of the retail installment sales act, Act No. 224 of the
Public Acts of 1966, being section 445.852 of the Michigan Compiled Laws.
445.953 Rental-purchase agreement;
form; contents; information requirements; separate form; disclosure of
additional information. [M.S.A. 19.418(63) ]
Sec. 3. (1) A rental-purchase agreement shall be in the form of a written
statement which shall include all of the following: (a) A brief description of
the leased property, sufficient to identify the property to the lessee and
lessor including whether the property is new or previously rented. If a lease is
for multiple items, a description of each item may be provided in a separate
statement which is incorporated by reference in the primary disclosure
statement.
(b) The total amount of any initial payment, including any advance payment,
delivery charge, or any trade-in allowance to be paid by the lessee at or before
consummation of the rental-purchase agreement.
(c) The amount and timing of payments.
(d) The amount of all other charges, individually itemized, payable by the
lessee to the lessor, which are not included in the periodic payments.
(e) A statement of the party liable for loss, damage in excess of normal wear
and tear, or destruction to the leased property.
(f) The lessee's right to reinstate and the amount or method of determining the
amount of any penalty or other charge for reinstatement as established in
section 8.
(g) The party responsible for maintaining or servicing the leased property
together with a brief description of this responsibility.
(h) A statement of the conditions under which the lessee or lessor may terminate
the lease.
(i) A statement of the product of the number of payments times the amount of
each payment necessary to acquire ownership of the leased property.
(j) A statement that the lessee has the option to purchase the leased property
during the term of the rental purchase agreement and, at what price, formula, or
by what method the price is determined.
(k) The cash price of the property if purchased rather than leased.
(l) A statement that if any part of a manufacturer's warranty remains on the
leased property at the point that a lessee assumes ownership of the property,
the warranty will be passed on to the lessee.
(m) A notice in a prominent place in type not smaller than the size of 12-point
type, or in legible print with letters not smaller than 1/8 inch, in
substantially the following form: NOTICE: THIS AGREEMENT IS REGULATED BY STATE
LAW AND MAY BE ENFORCED BY THE ATTORNEY GENERAL OR BY PRIVATE LEGAL ACTION.
(2) All information required by this section shall be stated in a clear and
coherent manner, using words and phrases of common meaning. The information
shall be appropriately divided and captioned by its sections. All numerical
amounts and percentages shall be stated in figures. The information shall also
be disclosed by the lessor prior to the signing of the lease by the lessee on a
dated written statement which identifies the lease or rental-purchase agreement
and the parties to it. The written statement shall contain all of the
information required by this section and shall be provided directly on the lease
contract or instrument or on a separate form. A separate form may utilize the
format provided for in section 19.
(3) At the lessor's option, information in addition to that required by this
section may be disclosed if the additional information is not stated, utilized,
or placed in a manner which will contradict, obscure, or distract attention from
the required information.
445.954 Amount necessary
to acquire ownership; amount applied toward purchase price. [M.S.A.
19.418(64) ]
Sec. 4. (1) The amount to be paid by the lessee to acquire ownership as
disclosed in section 3(j) shall not be greater than the cash price as disclosed
under section 3(k) minus an amount equal to 45% of all periodic rental payments
made by the lessee.
(2) If at any time an amount equal to 45% of the total periodic rental payments
paid by the lessee to the lessor equals the cash purchase price disclosed under
section 3(k), then the lessee shall acquire ownership of the rental property.
(3) This section shall not prohibit a lessor from offering a rental purchase
agreement which provides that an amount equal to 45% or more of the periodic
rental payments is applied toward the purchase price disclosed in section 3(k).
445.955 Advertising requirements;
requirements as to items displayed or offered under rental-purchase agreement. [M.S.A.
19.418(65) ]
Sec. 5. (1) An advertisement for any rental-purchase agreement shall not state
that a specific lease of any property at specific amounts or terms is available
unless the lessor usually and customarily leases or will lease the property at
those amounts or terms.
(2) An advertisement shall not state that a payment or a periodic payment is due
at the start of a lease without disclosing both the payment due at the start of
the lease, the periodic payment, all other charges payable by the lessee, and
the total of all periodic payments necessary to obtain ownership.
(3) Every item displayed or offered under a rental-purchase agreement shall have
clearly and conspicuously indicated in arabic numerals, so as to be readable and
understandable by visual inspection, each of the following stamped upon or
affixed to the item: (a) The cash price of the item.
(b) The amount of a periodic payment.
(c) The total number of periodic payments required for ownership.
445.956
Prohibited provisions in rental-purchase agreement. [M.S.A. 19.418(66) ]
Sec. 6. A rental-purchase agreement shall not contain a provision requiring any
of the following: (a) A garnishment of wages or a power of attorney to confess a
judgment.
(b) Authorization to 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 goods.
(c) The lessee to waive any defense, counterclaim, or right of action against
the lessor or a person acting on the lessor's behalf, as the lessee's agent in
collection of payments under the lease or in the repossession of goods.
(d) The lessee to agree not to assert against the lessor or against an assignee
a claim or defense arising out of the lease.
(e) A requirement for any collection or repossession charges in excess of those
allowable under section 7(e) and applicable court rules.
445.957 Prohibited requirements. [M.S.A.
19.418(67) ]
Sec. 7. A lessor shall not require any of the following: (a) The purchase of
insurance by the lessee from the lessor of a leased item.
(b) A payment which is in excess or in addition to a normal periodic payment and
which is required in order to purchase a leased item at the conclusion of the
periodic payments necessary to acquire ownership.
(c) A penalty for early termination of a rental-purchase agreement or for the
return of an item at any point.
(d) A processing fee of any sort.
(e) A fee for in home collection of a payment unless the lessee has expressly
agreed to the fee and the amount of the fee is disclosed.
445.958 Failure to
make timely periodic payments; rights of lessee; reinstatement fee; delivery
fee; same or substitute item provided on reinstatement. [M.S.A. 19.418(68) ]
Sec. 8. (1) A lessee who fails to make timely periodic payments shall have the
right to reinstate the original rental-purchase agreement without losing any
rights or options previously acquired under the rental-purchase agreement if
both of the following apply: (a) The lessee has not missed more than 3 periodic
payments.
(b) More than 1 periodic scheduled payment has been missed and the lessee has
surrendered the item to the lessor during the time in which payments were
missed.
(2) A lessee shall not be charged a reinstatement fee due to missed payments
unless the lessee has missed more than 1 periodic payment. A reinstatement fee
shall equal the outstanding balance of any missed payments plus 5% of the
balance of the missed payments or $5.00, whichever is less. A delivery fee not
to exceed the original delivery fee may be charged if redelivery of an item is
necessary.
(3) If reinstatement occurs pursuant to this section, the lessor shall provide
the lessee with either the same item leased by the lessee prior to reinstatement
or a substitute item of comparable quality and condition. If a substitute item
is provided, the lessor shall provide the lessee with all of the information
required in section 3.
445.959 Temporary or
permanent injunction; venue; costs; civil penalty; notice of intended
action; opportunity to cease and desist or to confer with attorney general;
notice of alleged violation; civil penalty for knowing violation. [M.S.A.
19.418(69) ]
Sec. 9. (1) When the attorney general has probable cause to believe that a
person has engaged, is engaging, or is about to engage in a method, act, or
practice which is unlawful pursuant to this act, and upon notice given in
accordance with this section, the attorney general may bring an action in
accordance with principles of equity to restrain the defendant by temporary or
permanent injunction from engaging in the method, act, or practice. The action
may be brought in the circuit court of the county where the defendant is
established or conducts business or, if the defendant is not established in this
state, in the circuit court of Ingham county. The court may award costs to the
prevailing party. For persistent and knowing violation of this act the court may
assess the defendant a civil penalty of not more than $25,000.00.
(2) Unless waived by the court on good cause shown not less than 10 days before
the commencement of an action under this section, the attorney general shall
notify the person of the attorney general's intended action and give the person
an opportunity to cease and desist from the alleged unlawful method, act, or
practice or to confer with the attorney general in person, by counsel, or by
other representative as to the proposed action before the proposed filing date.
The notice may be given the person by mail, postage prepaid, to his or her usual
place of business or, if the person does not have a usual place of business, to
his or her last known address, or, with respect to a corporation, only to a
resident agent who is designated to receive service of process or to an officer
of the corporation.
(3) A prosecuting attorney or law enforcement officer receiving notice of an
alleged violation of this act, or of a violation of an injunction, order,
decree, or judgment issued in an action brought pursuant to this section, or of
an assurance under this act, shall immediately forward written notice of the
violation together with any information he or she may have to the office of the
attorney general.
(4) A person who knowingly violates the terms of an injunction, order, decree,
or judgment issued pursuant to this section shall forfeit and pay to the state a
civil penalty of not more than $5,000.00 for each violation. For the purposes of
this section, the court issuing an injunction, order, decree, or judgment shall
retain jurisdiction, the cause shall be continued, and the attorney general may
petition for recovery of a civil penalty as provided by this section.
445.960 Assurance of
discontinuance. [M.S.A. 19.418(70) ]
Sec. 10. (1) When the attorney general has authority to institute an action or
proceeding pursuant to section 9, the attorney general may accept an assurance
of discontinuance of a method, act, or practice which is alleged to be unlawful
under this act from the person who is alleged to have engaged, be engaging, or
be about to engage in the method, act, or practice. The assurance shall not
constitute an admission of guilt nor be introduced in any other proceeding. The
assurance may include a stipulation for any or all of the following: (a) The
voluntary payment by the person for the costs of investigation.
(b) An amount to be held in escrow pending the outcome of an action.
(c) An amount for restitution to an aggrieved person.
(2) An assurance of discontinuance shall be in writing and may be filed with the
circuit court of Ingham county. The clerk of the court shall maintain a record
of the filings. Unless rescinded by the parties or voided by a court for good
cause, the assurance may be enforced in the circuit court by the parties to the
assurance. The assurance may be modified by the parties or by a court for good
cause.
445.961 Subpoena; service and contents of notice;
extension of reporting date; modification or setting aside of notice and
subpoena; confidentiality; disclosures; disclosure as misdemeanor; penalty. [M.S.A.
19.418(71) ]
Sec. 11. (1) Upon the ex parte application of the attorney general to the
circuit court in the county where the defendant is established or conducts
business or, if the defendant is not established in this state, in Ingham
county, the circuit court, if it finds probable cause to believe a person has
engaged, is engaging, or is about to engage in a method, act, or practice which
is unlawful under this act, may, after an ex parte hearing, issue a subpoena
compelling a person to appear before the attorney general and answer under oath
questions relating to an alleged violation of this act. A person served with a
subpoena may be accompanied by counsel when he or she appears before the
attorney general. The subpoena may compel a person to produce the books,
records, papers, documents, or things relating to an alleged violation of this
act. During the examination of documentary material under the subpoena, the
court may require a person having knowledge of the documentary material or the
matters contained therein to attend and give testimony under oath or
acknowledgment with respect to the documentary material.
(2) The subpoena shall include the notice of the time, place, and cause of the
taking of testimony, the examination, or the attendance and shall allow not less
than 10 days before the date of the taking of testimony or examination, unless
for good cause shown the court shortens that period of time.
(3) Service of the notice shall be in the manner provided and subject to the
provisions that apply to service of process upon a defendant in a civil action
commenced in the circuit court.
(4) The notice shall: (a) State the time and place for the taking of testimony
or the examination and the name and address of the person to be examined. If the
name is not known, the notice shall give a general description sufficient to
identify the person or the particular class or group to which the person
belongs.
(b) State a reference to this section and the general subject matter under
investigation.
(c) Describe the documentary material to be produced with reasonable specificity
so as to indicate fairly the material demanded.
(d) Prescribe a return date within which the documentary material shall be
produced.
(e) Identify the members of the attorney general's staff to whom the documentary
material shall be made available for inspection and copying.
(5) At any time before the date specified in the notice, upon motion for good
cause shown, the court may extend the reporting date or modify or set aside the
notice and subpoena.
(6) The documentary material or other information obtained by the attorney
general pursuant to an investigation under this section shall be confidential
records of the office of the attorney general and shall not be available for
public inspection or copying or divulged to any person except as provided in
this section. The attorney general may disclose documentary material or other
information as follows: (a) To other law enforcement officials.
(b) In connection with an enforcement action brought pursuant to this act.
(c) Upon order of the court, to a party in a private action brought pursuant to
this act.
(7) A person who discloses information designated confidential by this section,
except as permitted by subsection (6) or under court order, is guilty of a
misdemeanor and may be fined not more than $2,500.00, or imprisoned for not more
than 1 year, or both.
445.962 Compliance with terms
of notice; prohibited conduct; civil penalty; petition for order to enforce
compliance; violation of final order as civil contempt; enjoining person from
doing business in state. [M.S.A. 19.418(72) ]
Sec. 12. (1) A person upon whom a notice is served pursuant to section 11 shall
comply with the terms of the notice unless otherwise provided by the order of
the circuit court.
(2) A person who does any of the following shall be assessed a civil penalty of
not more than $5,000.00: (a) Knowingly without good cause fails to appear when
served with a notice.
(b) Knowingly avoids, evades, or prevents compliance, in whole or in part, with
an investigation, including the removal from any place, concealment,
destruction, mutilation, alteration, or falsification of documentary material in
the possession, custody, or control of a person subject to the notice.
(c) Knowingly conceals relevant information.
(3) The attorney general may file a petition in the circuit court of the county
in which the person is established or conducts business or, if the person is not
established in this state, in the circuit court of Ingham county for an order to
enforce compliance with a subpoena or this section. A violation of a final order
entered pursuant to this section shall be punished as civil contempt.
(4) Upon the petition of the attorney general, the circuit court may enjoin a
person from doing business in this state if the person persistently and
knowingly evades or prevents compliance with an injunction issued pursuant to
this act.
445.963 Class action for actual
damages; order; appointment of receiver; sequestration of assets; cost of
notice; effect of bona fide error; limitations. [M.S.A. 19.418(73) ]
Sec. 13. (1) The attorney general may bring a class action on behalf of persons
residing in or injured in this state for the actual damages caused by a method,
act, or practice in trade or commerce which is prohibited by this act.
(2) On motion of the attorney general and without bond in an action under this
section the court may make an appropriate order: to reimburse persons who have
suffered damages; to carry out a transaction in accordance with the aggrieved
persons' reasonable expectations; to strike or limit the application of
unconscionable clauses of contracts to avoid an unconscionable result; or to
grant other appropriate relief. The court after a hearing may appoint a receiver
or order sequestration of the defendant's assets if it appears to the
satisfaction of the court that the defendant threatens or is about to remove,
conceal, or dispose of his or her assets to the detriment of members of the
class.
(3) If at any stage of the proceedings the court requires that notice be sent to
the class, the attorney general may petition the court to require the defendant
to bear the cost of the notice. In determining whether to impose the cost on the
defendant or the state, the court shall consider the probability that the
attorney general will succeed on the merits of the action.
(4) If the defendant shows by a preponderance of the evidence that a violation
of this act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid the error, the amount of recovery shall
be limited to actual damages.
(5) An action shall not be brought by the attorney general under this section
more than 6 years after the occurrence of the method, act, or practice which is
the subject of the action nor more than 1 year after the last payment in a
transaction involving the method, act, or practice which is the subject of the
action, whichever period of time ends on a later date.
445.964 Action
for declaratory judgment or injunction; action for actual damages and
attorneys' fees; class action for actual damages; order; appointment of
receiver; sequestration of assets; cost of notice to class; effect of bona fide
effort; limitations; defense or counterclaim. [M.S.A. 19.418(74) ]
Sec. 14. (1) Whether or not a person seeks damages or has an adequate remedy at
law, a person may bring an action to do either or both of the following: (a)
Obtain a declaratory judgment that a method, act, or practice is unlawful under
this act.
(b) Enjoin in accordance with the principles of equity a person who is engaging
or is about to engage in a method, act, or practice which is unlawful under this
act.
(2) Except in a class action, a person who suffers loss as a result of a
violation of this act may bring an action to recover actual damages or $250.00,
whichever is greater, together with reasonable attorneys' fees.
(3) A person who suffers loss as a result of a violation of this act may bring a
class action on behalf of persons residing or injured in this state for the
actual damages caused by a method, act, or practice which is prohibited by this
act.
(4) On motion of a person and without bond in an action brought under subsection
(3) the court may make an appropriate order: to reimburse persons who have
suffered damages; to carry out a transaction in accordance with the aggrieved
persons' reasonable expectations; to strike or limit the application of
unconscionable clauses of contracts to avoid an unconscionable result; or to
grant other appropriate relief. The court after a hearing may appoint a receiver
or order sequestration of the defendant's assets if it appears to the
satisfaction of the court that the defendant threatens or is about to remove,
conceal, or dispose of his or her assets to the detriment of members of the
class.
(5) If at any stage of proceedings brought under subsection (3) the court
requires that notice be sent to the class, a person may petition the court to
require the defendant to bear the cost of notice. In determining whether to
impose the cost on the defendant or the plaintiff, the court shall consider the
probability that the person will succeed on the merits of his or her action.
(6) If the defendant shows by a preponderance of the evidence that a violation
of this act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid the error, the amount of recovery shall
be limited to actual damages.
(7) An action under this section shall not be brought more than 6 years after
the occurrence of the method, act, or practice which is the subject of the
action nor more than 1 year after the last payment in a transaction involving
the method, act, or practice which is the subject of the action, whichever
period of time ends at a later date. However, when a person commences an action
against another person, the defendant may assert, as a defense or counterclaim,
any claim under this act arising out of the transaction on which the action is
brought.
445.965 Mailing copy of complaint,
judgment, decree, or order to attorney general. [M.S.A. 19.418(75) ]
Sec. 15. (1) Upon commencement of an action brought pursuant to section 14 or
18, the clerk of the court shall mail a copy of the complaint to the attorney
general, and upon entry of a judgment or decree in the action, the clerk of the
court shall mail a copy of the judgment, decree, or order to the attorney
general.
(2) In a subsequent action by the attorney general brought pursuant to section
13, proof of a violation of a permanent injunction issued pursuant to this act
is conclusive evidence that the defendant engaged in a method, act, or practice
which is unlawful under this act.
445.966 Payment of filing fees. [M.S.A.
19.418(76) ]
Sec. 16. Payment of filing fees shall not be required in an action or filing for
a voluntary assurance by the attorney general or prosecuting attorney pursuant
to this act.
445.967 Aid and
assistance of law enforcement officer. [M.S.A. 19.418(77) ]
Sec. 17. A law enforcement officer in the state, if requested by the attorney
general or a prosecuting attorney, shall aid and assist in an investigation of
an alleged or actual violation of this act.
445.968
Investigation and prosecution by prosecuting attorney. [M.S.A. 19.418(78) ]
Sec. 18. A prosecuting attorney may conduct an investigation pursuant to this
act and may institute and prosecute an action under this act in the same manner
as the attorney general.
445.969 Other causes of
action not affected; inconsistent ordinance or regulation prohibited. [M.S.A.
19.418(79) ]
Sec. 19. This act shall not affect any other cause of action which is available.
A city, village, township, or county shall not enact an ordinance or other
regulation inconsistent with this act or with a rule promulgated pursuant to
this act.
445.970 Example
of form satisfying requirements of act. [M.S.A. 19.418(80) ]
Sec. 20. The following form is an example of the form which may be used to
satisfy the requirements of this act:
| RENTAL PURCHASE AGREEMENT |
| 1. |
Lessor(s) |
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Lessee(s) |
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| 2. |
Description of Leased Property: |
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Item |
Quantity Serial # |
Mfg. |
Model |
New/Previously Rented |
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| 3. |
Total Payment Due at Beginning of Contract: |
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| Advance Payment of $_____ |
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| Delivery Charge $_____ |
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| Use Taxes $_____ |
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| Other $_____ (please specify). |
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| Total $_____ |
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| 4. |
Term and cost of the lease (monthly/weekly) |
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The first monthly/weekly payment of $_____ is due on
_____. |
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Other regular payments of $_____ on the _____ of
month/week thereafter. |
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Total number of monthly/weekly payments _____. |
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Total amount of all other charges $_____ (please
specify). |
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Sum total of all payments $_____. |
| 5. |
Periodic Payment: |
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You may renew the lease weekly or monthly as you
choose. |
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The weekly rental would be $_____. |
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The monthly rental would be $_____. |
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| 6. |
For a charge of $_____ per payment, we can pick up
the payment at your home. |
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Sign here if you want this service __________. |
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| 7. |
Liability: |
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| 8. |
Maintenance: |
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We will maintain the leased property in good working
condition during the term of the lease and will provide all
necessary service and repair (specify if in home or in store) if you
notify us by phone or mail that service is needed. We are not
responsible for maintenance done by anyone other than us. |
| 9. |
Termination and Default: |
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You may terminate this lease at the end of any
weekly/monthly term without paying any charges other than those
previously due. |
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We may terminate this lease for a default in payment
or breach of any other material term of the lease. If a termination
occurs, we shall be entitled to all rental payments up to the date
of termination and the expenses of repossessing the property if you
fail to surrender it to us. |
| 10. |
Reinstatement: |
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We do not charge late payment charges. If you elect
to renew within 3 weeks/months, and surrender the property within 1
week/month of missing a payment, you may reinstate without loss of
any rights or options previously acquired. However, if you miss more
than 1 payment, a reinstatement fee of 5% of the balance of the
missed payments, or $5.00, whichever is less, may be charged. Also,
a delivery fee, not to exceed the original delivery fee, may be
charged if redelivery of the property is required. |
| 11. |
Purchase Option: |
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You may purchase the property leased to you under
this contract for the cash price minus 45% of all periodic payments
made. The property leased under this contract would cost $_____ if
purchased rather than leased. |
| 12. |
Warranty: |
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A manufacturer's warranty on the property leased
under this contract shall be passed on to the lessee if the lessee
purchases the property. |
| 13. |
Notice: |
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This agreement is regulated by state law enforceable
by the attorney general or by private legal action. |
| I have read the above statement before signing this
agreement. |
| Date: |
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Lessee: |
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Lessee: |
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