Sec. 2.
As used in this act:
(a) "Lessee" means a person who leases property pursuant to a rental-purchase agreement.
(b) "Lessor" means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement.
(c) "Period" means a day, week, 1 month, or other subdivision of a year.
(d) "Rental-purchase agreement" means an agreement for the use of personal property by a lessee primarily for personal, family, or household purposes, for an initial period of 4 months or less that is automatically renewable with each payment after the initial period and that permits the lessee to become the owner of the property. Rental-purchase agreements shall not include any of the following:
(i) A lease or agreement which constitutes a credit sale as defined in 12 C.F.R. 226.2(a)(16) and section 1602(g) of the truth in lending act, 15 U.S.C. 1602(g).
(ii) A lease which constitutes a consumer lease as defined in 12 C.F.R. 213.2(a)(6).
(iii) Any lease for agricultural, business, or commercial purposes.
(iv) Any lease made to an organization.
(v) Any lease of money or intangible personal property.
(vi) A lease or agreement which constitutes a retail installment transaction as defined in section 2 of the retail installment sales act, Act No. 224 of the Public Acts of 1966, being section 445.852 of the Michigan Compiled Laws.
History: 1984, Act 424, Eff. Mar. 29, 1985