Right to Reinstatement of Agreement by Lessee Failing to Make Timely Payments; Fees; Substitute Items

  1. Law
  2. Georgia Code
  3. Commerce and Trade
  4. Selling and Other Trade Practices
  5. Lease-Purchase Agreements
  6. Right to Reinstatement of Agreement by Lessee Failing to Make Timely Payments; Fees; Substitute Items

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  1. A lessee who fails to make timely periodic payments shall have the right to reinstate the original lease-purchase agreement without losing any rights or options previously acquired under the lease-purchase agreement if both of the following apply:
    1. The lessee has not missed more than three periodic payments; and
    2. One periodic payment has been missed and the lessee has surrendered the item to the lessor, if requested by the lessor, during the time in which payments were missed.
  2. A lessee shall not be charged more than one reinstatement fee per missed periodic payment. A reinstatement fee shall equal the outstanding balance of any missed payments plus a charge which shall not exceed $5.00 per missed payment. A delivery fee not to exceed the original delivery fee may be charged if redelivery of an item is necessary.
  3. If reinstatement occurs pursuant to this Code section, the lessor shall provide the lessee with either the same item leased by the lessee prior to reinstatement or a substitute item of comparable quality and condition. If a substitute item is provided, the lessor shall provide the lessee with all of the information required in Code Section 10-1-682.

(Code 1981, §10-1-686, enacted by Ga. L. 1985, p. 1341, § 1.)


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