IC 24-7-6
    Chapter 6. Reinstatement; Garnishment; UnconscionableAgreements

IC 24-7-6-1
Reinstatement of original agreement; conditions
    Sec. 1. A lessee who fails to make timely rental payments has theright to reinstate the original rental purchase agreement withoutlosing any rights or options previously acquired under the rentalpurchase agreement if:
        (1) subsequent to having failed to make a timely rental payment,the lessee promptly surrenders the property to the lessor, ifrequested by the lessor; and
        (2) not more than sixty (60) days elapse after the lessee returnsthe property.
As added by P.L.254-1987, SEC.1.

IC 24-7-6-2
Condition precedent to reinstatement; charges
    Sec. 2. (a) As a condition precedent to reinstatement of the rentalpurchase agreement, a lessor may charge:
        (1) the outstanding balance of any accrued rental payments anddelinquency charges;
        (2) a reinstatement fee not exceeding the amount allowed underIC 24-7-5-6; and
        (3) delivery charges not exceeding the amounts allowed underIC 24-7-5-3 if redelivery of the item is necessary.
    (b) A reinstatement fee may not be charged under subsection(a)(2) unless the property has been returned to the lessor and is in thelessor's possession.
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,SEC.11.

IC 24-7-6-3
Same or substituted leased item upon reinstatement; reviseddisclosures
    Sec. 3. If reinstatement occurs under sections 1 through 2 of thischapter, the lessor shall provide the lessee with either the same itemleased by the lessee before reinstatement or a substitute item ofcomparable quality and condition. If any information disclosed underIC 24-7-3-2 is inaccurate after the delivery of a substitute item, thelessor shall provide the lessee with a revised set of disclosures. Ifthere is more than one (1) lessee in a rental purchase agreement,delivery of a copy of the revised set of disclosures to one (1) of thelessees is sufficient to comply with this section.
As added by P.L.254-1987, SEC.1.

IC 24-7-6-4
Prejudgment garnishment proceedings
    Sec. 4. (a) IC 24-4.5-5-105 and IC 24-4.5-5-106 apply to

garnishments related to a rental purchase agreement.
    (b) With respect to a debt arising from a rental purchaseagreement, regardless of where made, the lessor may not attachunpaid earnings of the debtor by garnishment proceedings or othersimilar proceedings before the entry of a judgment in an actionagainst the lessee arising from a rental purchase agreement.
As added by P.L.254-1987, SEC.1.

IC 24-7-6-5
Unconscionable agreements
    Sec. 5. (a) If the court as a matter of law finds the rental purchaseagreement or any clause of a rental purchase agreement to have beenunconscionable at the time it was made the court may:
        (1) refuse to enforce the rental purchase agreement;
        (2) enforce the remainder of the rental purchase agreementwithout the unconscionable clause; or
        (3) limit the application of any unconscionable clause to avoidan unconscionable result.
    (b) If it is claimed or appears to the court that a rental purchaseagreement or any clause of the rental purchase agreement may beunconscionable, the parties shall be afforded a reasonableopportunity to present evidence as to its setting, purpose, and effectto aid the court in making the determination.
    (c) For the purposes of this section, a rental payment, charge, orpractice expressly permitted by this article is not in itselfunconscionable.
As added by P.L.254-1987, SEC.1.