(a) A renegotiation occurs when an existing consumer rental-purchase agreement is satisfied and replaced by a new consumer rental-purchase agreement undertaken by the same lessor and lessee. A renegotiation is a new lease requiring new disclosures. However, the following events are not treated as renegotiations:
(1) the addition or return of property in a multiple-item agreement or the substitution of the leased property, if in either case the average payment allocable to a payment period is not changed by more than twenty-five percent;
(2) a deferral or extension of one or more periodic payments, or portions of a periodic payment;
(3) a reduction in charges in the agreement;
(4) a lease or agreement involved in a court proceeding;
(b) No disclosures are required for any extension of a consumer rental-purchase agreement.
HISTORY: 1985 Act No. 121, Section 6.