Sec. 7. Other agreement provisions

694 words·~3 min read·/bill/113/s/1208/is/section-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Each rental-purchase agreement shall— provide a statement specifying whether the merchant or the consumer is responsible for loss, theft, damage, or destruction of the property; provide a statement specifying whether the merchant or the consumer is responsible for maintaining or servicing the property, together with a brief description of the responsibility; contain a provision for reinstatement of the agreement, which, at a minimum— permits a consumer who fails to make a timely rental payment to reinstate the agreement, without losing any rights or options which exist under the agreement, by the payment of all past due rental payments and any other charges then due under the agreement and a payment for the next rental period— within 7 business days after failing to make a timely rental payment, if the consumer pays monthly; or within 3 business days after failing to make a timely rental payment, if the consumer pays more frequently than monthly; if the consumer returns or voluntarily surrenders the property covered by the agreement, other than through judicial process, during the applicable reinstatement period set forth in subparagraph (A), permits the consumer to reinstate the agreement during a period of at least 60 days after the date of the return or surrender of the property by the payment of all amounts previously due under the agreement, any applicable fees, and a payment for the next rental period; if the consumer has paid 50 percent or more of the total cost necessary to acquire ownership and returns or voluntarily surrenders the property, other than through judicial process, during the applicable reinstatement period set forth in subparagraph (A), permits the consumer to reinstate the agreement during a period of at least 120 days after the date of the return of the property by the payment of all amounts previously due under the agreement, any applicable fees, and a payment for the next rental period; if the consumer is a member of the Armed Forces and returns or voluntarily surrenders property as set forth in subparagraph

(A)due to a permanent change of station or other relocation of the member, provides that the applicable reinstatement period set forth in subparagraph

(B)or

(C)be tolled or otherwise suspended until such time as the consumer returns to the area where the property is located; and permits the consumer, upon reinstatement of the agreement to receive the same property, if available, that was the subject of the rental-purchase agreement, or if the same property is not available, a substitute item of comparable quality and condition may be provided to the consumer, except that, the Commission may, by regulation or order, exempt any independent small business (as defined by the Commission, by regulation) from the requirement of providing the same or comparable product during the extended reinstatement period provided in subparagraph (C), if the Commission determines, taking into account such standards as the Commission determines to be appropriate, that the reinstatement right provided in such subparagraph would provide excessive hardship for such independent small business; provide a statement specifying the terms under which the consumer shall acquire ownership of the property that is the subject of the rental-purchase agreement, either by payment of the total cost to acquire ownership, as provided in section 8, or by exercise of any early purchase option provided in the rental-purchase agreement; provide a statement disclosing that if any part of an express warranty of the manufacturer covers the property at the time the consumer acquires ownership of the property, the warranty will be transferred to the consumer, if allowed by the terms of the warranty; and provide, to the extent applicable, a description of— any grace period for making any periodic payment; the amount of any security deposit, to be paid by the consumer upon initiation of the rental-purchase agreement; and the terms for refund of such security deposit to the consumer upon return, surrender, or purchase of the property. Subsection (a)(3) may not be construed so as to prevent a merchant from attempting to repossess property during the reinstatement period pursuant to subsection (a)(3)(A), but such a repossession does not affect the consumer’s right to reinstate in accordance with this Act.