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367.977 Necessary disclosures for rental-purchase agreement.
(1)
(2)
(3)
For each rental-purchase agreement, the lessor shall disclose the following
items as applicable:
(a) A brief description of the leased property, sufficient to identify the property
to the consumer and lessor;
(b) The number, amount, and timing of all lease payments necessary to
acquire ownership of the property;
(c) The maximum amount of all initial and periodic payments and other
charges to acquire ownership of the property pursuant to the ownership
provision of the rental-purchase agreement;
(d) A statement that the consumer will not own the property until the
consumer has made the number of payments and the total of payments
necessary to acquire ownership;
(e) A statement that the total of payments does not include other charges
such as late payment, default, pickup, and reinstatement fees, and that
the consumer should see the contract for an explanation of these
charges;
(f) If applicable, a statement that the consumer is responsible for the fair
market value of the property if it is lost, stolen, damaged, or destroyed;
(g) A statement indicating whether the property is new or used; however, a
statement that indicates new property is used is not a violation of KRS
367.976 to 367.985;
(h) A statement of the cash price of the property. If the agreement involves a
lease for five (5) or more items, a statement of the aggregate cash price
of all items shall satisfy this requirement;
(i) The total of initial payments required to be paid before consummation of
the agreement or delivery of the property, whichever is later;
(j) A statement clearly summarizing the terms of the consumer's options to
purchase;
(k) A statement identifying the party responsible for maintaining or servicing
the property while it is being leased, together with the description of that
responsibility and a statement that, if any part of a manufacturer's express
warranty covers the leased property at the time the consumer acquires
ownership of the property, it will be transferred to the consumer, if allowed
by the terms of the warranty; and
(l) The date of the transaction and the identities of the lessor and consumer.
With respect to matters specifically governed by the Federal Consumer Credit
Protection Act, compliance with that act shall satisfy the requirements of this
section.
Subsection (1) of this section shall not apply to a lessor who complies with the
disclosure requirements of Section 182 of the Federal Consumer Credit
Protection Act, 15 U.S.C.A. 1667a, 90 Stat. 250, with respect to a
rental-purchase agreement entered into with a consumer.
Effective:July 13, 1990
History: Created 1990 Ky. Acts ch. 196, sec. 2, effective July 13, 1990; and
ch. 304, sec. 2, effective July 13, 1990.
Legislative Research Commission Note (7/13/90). This section was created by
two separate 1990 Acts which are identical and have therefore been compiled
together.
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