50-684. Same; required disclosures in agreement.
50-684
50-684. Same; required disclosures in agreement.(a) For each lease-purchase agreement, the lessor shall disclosein the agreement the following items, as applicable:
(1) the total number, total amount and timing of all payments necessary toacquire ownership of the property;
(2) a statement that the consumer will not own the property until theconsumer has made the total payment necessary to acquire ownership;
(3) a statement that the consumer is responsible for the fair market valueof the property if, and as of the time, it is lost, stolen, damaged ordestroyed;
(4) a brief description of the leased property, sufficient to identify theproperty to the consumer and the lessor, including an identification number, ifapplicable, and a statement indicating whether the property is new or used, buta statement that indicates new property is used is not a violation of this act;
(5) a brief description of any damages to the leased property;
(6) a statement of the cash price of the property. Where the agreementinvolves a lease of five or more items as a set, in one agreement, a statementof the aggregate cash price of all items shall satisfy this requirement;
(7) the total of initial payments paid or required at or before consummationof the agreement or delivery of the property, whichever is later;
(8) a statement that the total of payments does not include other charges,such as late payment, default, pickup and reinstatement fees, which fees shallbe separately disclosed in the contract;
(9) a statement clearly summarizing the terms of the consumer's option topurchase, including a statement that the consumer has the right to exercise anearly purchase option and the price, formula or method for determining theprice at which the property may be so purchased;
(10) a statement identifying the party responsible for maintaining orservicing the property while it is being leased, together with a description ofthat responsibility, and a statement that if any part of a manufacturer'sexpress warranty covers the leased property at the time the consumer acquiresownership of the property, it shall be transferred to the consumer, if allowedby the terms of the warranty;
(11) the date of the transaction and the identities of the lessor andconsumer;
(12) a statement that the consumer may terminate the agreement withoutpenalty by voluntarily surrendering or returning the property in good repairupon expiration of any lease term along with any past due rental payments; and
(13) notice of the right to reinstate an agreement as herein provided.
(b) With respect to matters specifically governed by the federal consumercredit protection act, compliance with such act satisfies the requirements ofthis section.
History: L. 1991, ch. 71, § 5; July 1.