CHAPTER 4. LIMITATIONS
IC 24-7-4
Chapter 4. Limitations
IC 24-7-4-1
Ownership acquisition
Sec. 1. At any time after the first rental payment is made, thelessee may acquire ownership of the property under the termsspecified in the rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-2
Contractual abridgement of rights and duties
Sec. 2. A rental purchase agreement may not contain a provisionthat conflicts with the rights and duties imposed under this article.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-3
Assignment of earnings as payment
Sec. 3. (a) A lessor may not accept an assignment of earningsfrom the lessee for payment or as security for payment for a chargearising under a rental purchase agreement.
(b) An assignment of earnings in violation of this section isunenforceable by the assignee of the earnings and revocable by thelessee.
(c) This section does not prohibit a lessee from authorizingdeductions from the lessee's earnings if the authorization is revocableand is otherwise permitted by law.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-4
Acceptance of authorization on behalf of lessee waiving service ofprocess, confessing judgment, or enforcing payment
Sec. 4. A lessor may not take or accept a power of attorney orother authorization from the lessee, or other person acting on thelessee's behalf, to waive service of process, confess judgment, orenforce payment of money claimed by the lessor in violation ofIC 34-54-3 or IC 34-54-4.
As added by P.L.254-1987, SEC.1. Amended by P.L.1-1998,SEC.130.
IC 24-7-4-5
Required waiver of lessee's defenses, counterclaims, or rights ofaction in collecting payments or charges
Sec. 5. A lessor may not require a lessee to waive any defense,counterclaim, or right of action against:
(1) the lessor; or
(2) a person acting on the lessor's behalf, as the lessee's agent;
in collection of rental payments or charges under the rental purchaseagreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-6
Repossession limited
Sec. 6. A lessor may not require a lessee to authorize the lessor ora person acting on the lessor's behalf to unlawfully enter upon thelessee's premises or to commit any breach of the peace in therepossession of the property.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-7
Prejudgment garnishment
Sec. 7. A lessor may not require a lessee to authorize aprejudgment garnishment of the lessee's wages.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-8
Repealed
(Repealed by P.L.45-1995, SEC.33.)
IC 24-7-4-9
Assignee of lessor's rights; lessee's rights against assignee;contractual abridgement of lessee's claims or defenses
Sec. 9. (a) With respect to a rental purchase agreement, anassignee of the rights of the lessor is subject to all claims anddefenses of the lessee against the lessor arising from the lease ofproperty or services.
(b) A claim or defense of a lessee specified in subsection (a) maybe asserted against the assignee under this section only if the lesseehas made a good faith attempt to obtain satisfaction from the lessorwith respect to the claim or defense and then only to the extent of theamount owing the assignee with respect to the sale or the lease of theproperty or services to which the claim or defense arose at the timethe assignee has written notice of the claim or defense. Writtennotice of the claim or defense may be given before the attemptsspecified in this subsection. For the purposes of this subsection,written notice is any written notification other than notice on acoupon, billing statement, or any other payment medium or materialsupplied by the assignee.
(c) An agreement may not limit or waive the claims or defensesof a lessee under this section.
As added by P.L.254-1987, SEC.1. Amended by P.L.45-1995,SEC.18.
IC 24-7-4-10
Notice and proof of assignment
Sec. 10. (a) The lessee may pay the original lessor until the lesseereceives written notification:
(1) that assignment of the rights to rental payments under therental purchase agreement has occurred; and
(2) of the person to whom rental payments are to be made.
(b) A notification that does not reasonably identify the rights
assigned is ineffective.
(c) If requested by the lessee, the assignee must take reasonablesteps to furnish proof that the assignment has been made. Unless theassignee furnishes the proof, the lessee may pay the original lessor.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-11
Additional payments
Sec. 11. Except as provided in section 1 of this chapter, a lesseemay not be required to:
(1) make any payment in addition to regular rental payments inorder to acquire ownership of the property; or
(2) pay rental payments totaling more than the cost to acquireownership stated in the rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-12
Mandatory insurance; early termination of agreement or itemreturn penalties; fees or charges imposed on cosigner
Sec. 12. A lessor may not require any of the following:
(1) The mandatory purchase of insurance by the lessee from thelessor.
(2) A penalty for early termination of a rental purchaseagreement or for the return of an item at any point, exceptcharges authorized under IC 24-7-5.
(3) A payment by a cosigner of the rental purchase agreementfor any fees or charges that may not be imposed on the lessee aspart of the rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-4-13
Acceptance and application of payments; payments exceedingscheduled amount due
Sec. 13. (a) Except as provided in subsection (b), a lessor may notaccept payment from a lessee and hold the amount of the payment ina reserve account for future payments. Any amounts paid by a lesseemust be applied as a rental payment or to an accrued permissibleadditional charge.
(b) If a lessee makes a payment that exceeds the sum of thescheduled rental payment and any permitted additional charges thatare due, the lessor may hold the excess funds in a reserve accountsubject to the following conditions:
(1) The balance of the lessee's reserve account may not exceedthe amount of the next scheduled rental payment.
(2) If the balance in the lessee's reserve account reaches thelimit specified in subdivision (1), the lessor shall apply thefunds to the lessee's next scheduled rental payment.
(c) This section may not be construed to preclude a lessor fromaccepting and applying multiple rental payments before the rentalpayments' scheduled due dates.As added by P.L.35-2010, SEC.90.