Information required in disclosure.

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§481M-14 Information required in disclosure. (a) For each lease-purchase agreement, the lessor shall disclose in the agreement the following items, as applicable:

(1) The total number, total amount, and timing of all payments necessary to acquire ownership of the property;

(2) A statement that the lessee shall not own the property until the lessee has made the total payment necessary to acquire ownership;

(3) A statement that the lessee shall be responsible for the fair market value of the property if, and as of the time, it is lost, stolen, damaged, or destroyed;

(4) A brief description of the leased property sufficient to identify the property to the lessee and the lessor, including an identification number, if applicable, and a statement indicating whether the property is new or used; provided that a statement that indicates that new property is used property does not violate this chapter;

(5) A brief description of any damages to the leased property;

(6) A statement of the cash price of the property. If the agreement involves a lease of two or more items as a set in one agreement, a statement of the aggregate cash price of all items is sufficient;

(7) The total of initial payments made or required at or before consummation of the agreement or delivery of the property, whichever is later;

(8) A statement that the total of payments shall not include other charges, such as delivery, taxes, late payment, pickup, and reinstatement fees, which fees shall be separately disclosed in the agreement;

(9) A statement clearly summarizing the terms of the lessee's option to purchase, including a statement that the lessee has the right to exercise an early-purchase option and the price, formula, or method for determining the price at which the property may be so purchased;

(10) A statement identifying the party responsible for maintaining or servicing the property while it is being leased, together with a 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 lessee acquires ownership of the property, the warranty shall be transferred to the lessee, if allowed by the terms of the warranty;

(11) The date of the transaction and the identities of the lessor and lessee;

(12) A statement that the lessee may terminate the agreement without penalty by voluntarily surrendering or returning the property in good repair, ordinary wear and tear excepted, upon expiration of any lease term along with any past due rental payments; and

(13) Notice of the right to reinstate an agreement as provided in this chapter.

(b) In addition to the disclosures required pursuant to this section, the lessor shall also make the following disclosure:

NOTICE TO LESSEE--READ BEFORE SIGNING

(1) DO NOT SIGN THIS BEFORE YOU READ THE ENTIRE AGREEMENT INCLUDING ANY WRITING ON THE REVERSE SIDE, EVEN IF OTHERWISE ADVISED.

(2) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.

(3) YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN.

(4) 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.

(5) IF YOU ELECT TO MAKE WEEKLY RATHER THAN MONTHLY PAYMENTS AND EXERCISE YOUR PURCHASE OPTION, YOU MAY PAY MORE FOR THE LEASED PROPERTY.

(c) With respect to matters specifically governed by the federal Consumer Credit Protection Act (15 U.S.C. sections 1601 to 1674), compliance with that Act satisfies the requirements of this section. [L 1997, c 248, pt of §1; am L 2008, c 19, §34]


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