Sec. 12. A lessor may not require any of the following:

(1) The mandatory purchase of insurance by the lessee from the lessor.

(2) A penalty for early termination of a rental purchase agreement or for the return of an item at any point, except charges authorized under IC 24-7-5.

(3) A payment by a cosigner of the rental purchase agreement for any fees or charges that may not be imposed on the lessee as part of the rental purchase agreement.

As added by P.L.254-1987, SEC.1.