(1) A lessor shall disclose to a lessee in a rental purchase agreement the information required either by this part 4 or by the provisions of the federal "Consumer Credit Protection Act" if the federal "Consumer Credit Protection Act" is amended to cover disclosure in a rental purchase agreement. In a rental purchase agreement, the lessor shall disclose the following:
A brief description of the leased property, sufficient to identify the property to thelessee and lessor;
The total number of payments and the total amount of such payments necessary toacquire ownership;
The number, amount, and timing of each payment, including taxes paid to or throughthe lessor;
A statement that the lessee will not own the property until the lessee has made thetotal number of payments and the total amount of such payments necessary to acquire ownership;
A statement of all other charges which the lessee may have to pay together with theamount of any such charge and the conditions under which any such charge shall be incurred;
If applicable, a statement that the lessee is responsible for the fair market value of theproperty if and as of the time it is lost, stolen, damaged, or destroyed;
A statement indicating whether the property is new or used; except that it is not aviolation of this paragraph (g) to indicate that the property is used if it is actually new;
A statement that, at any time after the first lease payment is made, the lessee mayacquire ownership of the property, and a brief explanation of the price, formula, or other method for determining the price at which the property may be purchased;
A brief explanation of the lessee's right to reinstate, and a description of the amount,or method of determining the amount, of any penalty or other charge for reinstatement as established in section 5-10-602;
The cash price of the property subject to the rental purchase agreement; and
A statement of the maintenance services, if any, the lessor will provide with respectto the property subject to the rental purchase agreement.
(2) In addition to the disclosures required pursuant to subsection (1) of this section, the lessor shall also make the following disclosure:
NOTICE TO LESSEE -- READ BEFORE SIGNING
DO NOT SIGN THIS BEFORE YOU READ THE ENTIRE AGREEMENT INCLUDINGANY WRITING ON THE REVERSE SIDE, EVEN IF OTHERWISE ADVISED.
DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN.
YOU HAVE THE RIGHT TO EXERCISE ANY EARLY BUY-OUT OPTION AS PROVIDED IN THIS AGREEMENT. EXERCISE OF THIS OPTION MAY RESULT IN A REDUCTION OF YOUR TOTAL COST TO ACQUIRE OWNERSHIP UNDER THIS AGREEMENT.
IF YOU ELECT TO MAKE WEEKLY RATHER THAN MONTHLY PAYMENTS ANDEXERCISE YOUR PURCHASE OPTION, YOU MAY PAY MORE FOR THE LEASED PROPERTY.
Source: L. 90: Entire article added, p. 368, § 1, effective January 1, 1991.
Cross references: For the federal "Consumer Credit Protection Act", see Pub.L. 90-321.