A rental-purchase agreement shall not contain:
A. a confession of judgment;
B. a negotiable instrument;
C. a security interest or any other claim of a property interest in any property of the consumer;
D. a wage assignment;
E. a waiver by the consumer of claims or defenses;
F. a provision authorizing the lessor or a person acting on the lessor's behalf to enter upon the consumer's premises unlawfully or to commit any breach of the peace in the repossession of goods;
G. a provision requiring the purchase of insurance or a liability damage waiver from the lessor for goods that are the subject of the rental-purchase agreement;
H. a provision that mere failure to return goods constitutes probable cause for a criminal action;
I. a provision requiring the consumer to make a payment in addition to regular periodic payments in order to acquire ownership of the goods or a provision requiring the consumer to make periodic payments totaling more than the dollar amount necessary to acquire ownership as disclosed pursuant to Section 5 [57-26-5 NMSA 1978] of the Rental-Purchase Agreement Act;
J. a provision for more than one reinstatement fee on any one periodic payment, regardless of the period of time during which it remains unpaid; or
K. a provision for a late charge or any other type of charge or penalty for reinstating a rental-purchase agreement, other than a reinstatement fee; however, a lessor may use the term "late charge" or a similar term to refer to a reinstatement fee.
History: Laws 1995, ch. 38, § 6.