IC 24-7-3
    Chapter 3. Disclosures; Form of Rental Purchase Agreement

IC 24-7-3-1
Written agreement
    Sec. 1. The lessor shall reduce a rental purchase agreement towriting.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-2
Alternate disclosure requirements
    Sec. 2. A lessor shall disclose to a lessee the information requiredunder section 3 of this chapter. However, if the Federal ConsumerCredit Protection Act is amended to govern lease-purchasedisclosures, the lessor may disclose the information required underthe Federal Consumer Credit Protection Act instead of thedisclosures required under this chapter.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-3
Disclosures required
    Sec. 3. The lessor shall disclose the following:
        (1) A brief description of the property sufficient to identify theproperty to the lessee and lessor.
        (2) The total number, total amount, and timing of all rentalpayments, including taxes paid to or through the lessor,necessary to acquire ownership of the property.
        (3) A statement that the lessee will not own the property untilthe lessee has:
            (A) made the number of rental payments and the total ofrental payments necessary to acquire ownership of theproperty; or
            (B) exercised an early purchase option.
        (4) A statement that charges in addition to the total rentalpayments necessary to acquire ownership of the leased propertymay be imposed under the agreement and that the lessee shouldread the contract for an explanation of these charges.
        (5) A brief explanation of all additional charges that may beimposed under the agreement. If a security deposit is required,the explanation must include an explanation of the conditionsunder which the deposit will be returned to the lessee.
        (6) A statement indicating who is responsible for property if itis lost, stolen, damaged, or destroyed.
        (7) A statement indicating that the value of lost, stolen,damaged, or destroyed property is its fair market value on thedate that it is lost, stolen, damaged, or destroyed.
        (8) A statement indicating whether the property is new or used.However, property that is new may be described as used.
        (9) A statement that the lessee has an early purchase option topurchase the property at any time during the period that the

rental purchase agreement is in effect. The statement mustspecify the price or the formula or other method for determiningthe price at which the property may be purchased.
        (10) A brief explanation of the lessee's right to reinstate a rentalpurchase agreement and a description of the amount, or methodof determining the amount, of any penalty or other chargeapplicable under IC 24-7-5 to the reinstatement of a rentalpurchase agreement.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-4
Form of disclosures
    Sec. 4. (a) The disclosures required under section 3 of this chaptershall be stated:
        (1) clearly and conspicuously; and
        (2) in words and phrases that have a nontechnical meaning.
    (b) Except as provided in the rules adopted by the department, thedisclosures required under section 3 of this chapter may be includedin the rental purchase agreement or in a separate writing thatreferences the rental purchase agreement.
    (c) Except as provided in the rules adopted by the department, thedisclosures required under section 3 of this chapter may be providedin a different sequence than the sequence set forth in section 3 of thischapter.
    (d) Additional information or explanations supplied by the lessormay not have the effect of circumventing, evading, or undulycomplicating the information required to be disclosed.
As added by P.L.254-1987, SEC.1. Amended by P.L.172-1997,SEC.10.

IC 24-7-3-5
Time of disclosure
    Sec. 5. The lessor shall disclose all information required insection 3 of this chapter before the rental purchase agreement isconsummated.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-6
Copy of written and signed agreement to lessee
    Sec. 6. Before any rental payment is due under the rental purchaseagreement, the lessor shall obtain the signature of the lessee on thewriting containing the terms of the rental purchase agreement andshall furnish the lessee with a copy of the written and signed rentalpurchase agreement. If there is more than one (1) lessee in a rentalpurchase agreement, delivery of a copy of the rental purchaseagreement to one (1) of the lessees is sufficient to comply with thissection.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-7 Size of print
    Sec. 7. The terms of the rental purchase agreement shall be setforth in not less than 8 point type.
As added by P.L.254-1987, SEC.1.

IC 24-7-3-8
Rental payment receipts
    Sec. 8. The lessor shall furnish the lessee, without request by thelessee, a written receipt for each rental payment made:
        (1) in cash; or
        (2) by another method of rental payment that does not provideevidence of the rental payment.
As added by P.L.254-1987, SEC.1.