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 to
writing. 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 required
under section 3 of this chapter. However, if the Federal Consumer
Credit Protection Act is amended to govern lease-purchase
disclosures, the lessor may disclose the information required under
the Federal Consumer Credit Protection Act instead of the
disclosures 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 the
property to the lessee and lessor.
(2) The total number, total amount, and timing of all rental
payments, 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 until
the lessee has:
(A) made the number of rental payments and the total of
rental payments necessary to acquire ownership of the
property; or
(B) exercised an early purchase option.
(4) A statement that charges in addition to the total rental
payments necessary to acquire ownership of the leased property
may be imposed under the agreement and that the lessee should
read the contract for an explanation of these charges.
(5) A brief explanation of all additional charges that may be
imposed under the agreement. If a security deposit is required,
the explanation must include an explanation of the conditions
under which the deposit will be returned to the lessee.
(6) A statement indicating who is responsible for property if it
is 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 the
date 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 to
purchase the property at any time during the period that the
rental purchase agreement is in effect. The statement must
specify the price or the formula or other method for determining
the price at which the property may be purchased.
(10) A brief explanation of the lessee's right to reinstate a rental
purchase agreement and a description of the amount, or method
of determining the amount, of any penalty or other charge
applicable under IC 24-7-5 to the reinstatement of a rental
purchase 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 chapter
shall 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, the
disclosures required under section 3 of this chapter may be included
in the rental purchase agreement or in a separate writing that
references the rental purchase agreement.
(c) Except as provided in the rules adopted by the department, the
disclosures required under section 3 of this chapter may be provided
in a different sequence than the sequence set forth in section 3 of this
chapter.
(d) Additional information or explanations supplied by the lessor
may not have the effect of circumventing, evading, or unduly
complicating 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 in
section 3 of this chapter before the rental purchase agreement is
consummated. 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 purchase
agreement, the lessor shall obtain the signature of the lessee on the
writing containing the terms of the rental purchase agreement and
shall furnish the lessee with a copy of the written and signed rental
purchase agreement. If there is more than one (1) lessee in a rental
purchase agreement, delivery of a copy of the rental purchase
agreement to one (1) of the lessees is sufficient to comply with this
section. 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 set
forth 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 the
lessee, a written receipt for each rental payment made:
(1) in cash; or
(2) by another method of rental payment that does not provide
evidence of the rental payment. As added by P.L.254-1987, SEC.1.
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 to
writing. 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 required
under section 3 of this chapter. However, if the Federal Consumer
Credit Protection Act is amended to govern lease-purchase
disclosures, the lessor may disclose the information required under
the Federal Consumer Credit Protection Act instead of the
disclosures 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 the
property to the lessee and lessor.
(2) The total number, total amount, and timing of all rental
payments, 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 until
the lessee has:
(A) made the number of rental payments and the total of
rental payments necessary to acquire ownership of the
property; or
(B) exercised an early purchase option.
(4) A statement that charges in addition to the total rental
payments necessary to acquire ownership of the leased property
may be imposed under the agreement and that the lessee should
read the contract for an explanation of these charges.
(5) A brief explanation of all additional charges that may be
imposed under the agreement. If a security deposit is required,
the explanation must include an explanation of the conditions
under which the deposit will be returned to the lessee.
(6) A statement indicating who is responsible for property if it
is 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 the
date 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 to
purchase the property at any time during the period that the
rental purchase agreement is in effect. The statement must
specify the price or the formula or other method for determining
the price at which the property may be purchased.
(10) A brief explanation of the lessee's right to reinstate a rental
purchase agreement and a description of the amount, or method
of determining the amount, of any penalty or other charge
applicable under IC 24-7-5 to the reinstatement of a rental
purchase 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 chapter
shall 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, the
disclosures required under section 3 of this chapter may be included
in the rental purchase agreement or in a separate writing that
references the rental purchase agreement.
(c) Except as provided in the rules adopted by the department, the
disclosures required under section 3 of this chapter may be provided
in a different sequence than the sequence set forth in section 3 of this
chapter.
(d) Additional information or explanations supplied by the lessor
may not have the effect of circumventing, evading, or unduly
complicating 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 in
section 3 of this chapter before the rental purchase agreement is
consummated. 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 purchase
agreement, the lessor shall obtain the signature of the lessee on the
writing containing the terms of the rental purchase agreement and
shall furnish the lessee with a copy of the written and signed rental
purchase agreement. If there is more than one (1) lessee in a rental
purchase agreement, delivery of a copy of the rental purchase
agreement to one (1) of the lessees is sufficient to comply with this
section. 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 set
forth 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 the
lessee, a written receipt for each rental payment made:
(1) in cash; or
(2) by another method of rental payment that does not provide
evidence of the rental payment. As added by P.L.254-1987, SEC.1.
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 to
writing. 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 required
under section 3 of this chapter. However, if the Federal Consumer
Credit Protection Act is amended to govern lease-purchase
disclosures, the lessor may disclose the information required under
the Federal Consumer Credit Protection Act instead of the
disclosures 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 the
property to the lessee and lessor.
(2) The total number, total amount, and timing of all rental
payments, 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 until
the lessee has:
(A) made the number of rental payments and the total of
rental payments necessary to acquire ownership of the
property; or
(B) exercised an early purchase option.
(4) A statement that charges in addition to the total rental
payments necessary to acquire ownership of the leased property
may be imposed under the agreement and that the lessee should
read the contract for an explanation of these charges.
(5) A brief explanation of all additional charges that may be
imposed under the agreement. If a security deposit is required,
the explanation must include an explanation of the conditions
under which the deposit will be returned to the lessee.
(6) A statement indicating who is responsible for property if it
is 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 the
date 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 to
purchase the property at any time during the period that the
rental purchase agreement is in effect. The statement must
specify the price or the formula or other method for determining
the price at which the property may be purchased.
(10) A brief explanation of the lessee's right to reinstate a rental
purchase agreement and a description of the amount, or method
of determining the amount, of any penalty or other charge
applicable under IC 24-7-5 to the reinstatement of a rental
purchase 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 chapter
shall 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, the
disclosures required under section 3 of this chapter may be included
in the rental purchase agreement or in a separate writing that
references the rental purchase agreement.
(c) Except as provided in the rules adopted by the department, the
disclosures required under section 3 of this chapter may be provided
in a different sequence than the sequence set forth in section 3 of this
chapter.
(d) Additional information or explanations supplied by the lessor
may not have the effect of circumventing, evading, or unduly
complicating 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 in
section 3 of this chapter before the rental purchase agreement is
consummated. 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 purchase
agreement, the lessor shall obtain the signature of the lessee on the
writing containing the terms of the rental purchase agreement and
shall furnish the lessee with a copy of the written and signed rental
purchase agreement. If there is more than one (1) lessee in a rental
purchase agreement, delivery of a copy of the rental purchase
agreement to one (1) of the lessees is sufficient to comply with this
section. 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 set
forth 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 the
lessee, a written receipt for each rental payment made:
(1) in cash; or
(2) by another method of rental payment that does not provide
evidence of the rental payment. As added by P.L.254-1987, SEC.1.
