Sec. 9. Prohibited provisions
285 words·~1 min read·
/bill/113/s/1208/is/section-9·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A rental-purchase agreement may not contain— a confession of judgment; a negotiable instrument; a security interest or any other claim of a property interest in any goods, except those goods, the use of which is provided by the merchant pursuant to the rental-purchase agreement; a wage assignment; a provision requiring the waiver of any legal claim or remedy created by this Act or other provision of Federal or State law; a provision requiring the consumer, in the event that the property subject to the rental-purchase agreement is lost, stolen, damaged, or destroyed, to pay an amount in excess of the least of— the fair market value of the property, as determined by the Commission, by regulation; any early purchase option amount provided in the rental-purchase agreement; or the actual cost of repair, as appropriate; a provision authorizing the merchant, or a person acting on behalf of the merchant— to enter the consumer’s dwelling or other premises without obtaining the consumer’s consent; or to commit any breach of the peace in connection with the repossession of the rental property or the collection of any obligation or alleged obligation of the consumer arising out of the rental-purchase agreement; a provision requiring the purchase of insurance or liability damage waiver to cover the property that is the subject of the rental-purchase agreement, except as permitted by the Commission, by regulation; or a provision requiring the consumer to pay more than 1 late fee or charge for an unpaid or delinquent periodic payment, regardless of the period in which the payment remains unpaid or delinquent, or to pay a late fee or charge for any periodic payment because a previously assessed late fee has not been paid in full.