367.977 Necessary disclosures for rental-purchase agreement.
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/ky/chapter-367/367-977A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)For each rental-purchase agreement, the lessor shall disclose the following items as
applicable:
(a)A brief description of the leased property, sufficient to identify the property to
the consumer and lessor;
(b)The number, amount, and timing of all lease payments necessary to acquire
ownership of the property;
(c)The maximum amount of all initial and periodic payments and other charges
to acquire ownership of the property pursuant to the ownership provision of
the rental-purchase agreement;
(d)A statement that the consumer will not own the property until the consumer
has made the number of payments and the total of payments necessary to
acquire ownership;
(e)A statement that the total of payments does not include other charges such as
late payment, default, pickup, and reinstatement fees, and that the consumer
should see the contract for an explanation of these charges;
(f)If applicable, a statement that the consumer is responsible for the fair market
value of the property if it is lost, stolen, damaged, or destroyed;
(g)A statement indicating whether the property is new or used; however, a
statement that indicates new property is used is not a violation of KRS
367.976 to 367.985;
(h)A statement of the cash price of the property. If the agreement involves a lease
for five
(5)or more items, a statement of the aggregate cash price of all items
shall satisfy this requirement;
(i)The total of initial payments required to be paid before consummation of the
agreement or delivery of the property, whichever is later;
(j)A statement clearly summarizing the terms of the consumer's options to
purchase;
(k)A statement identifying the party responsible for maintaining or servicing the
property while it is being leased, together with the description of that
responsibility and a statement that, if any part of a manufacturer's express
warranty covers the leased property at the time the consumer acquires
ownership of the property, it will be transferred to the consumer, if allowed by
the terms of the warranty; and
(l)The date of the transaction and the identities of the lessor and consumer.
(2)With respect to matters specifically governed by the Federal Consumer Credit
Protection Act, compliance with that act shall satisfy the requirements of this
section.
(3)Subsection
(1)of this section shall not apply to a lessor who complies with the
disclosure requirements of Section 182 of the Federal Consumer Credit Protection
Act, 15 U.S.C.A. 1667a, 90 Stat. 250, with respect to a rental-purchase agreement
entered into with a consumer.