(a) For each rental-purchase agreement, the lessor shall disclose the following items as applicable:
Terms Used In Tennessee Code 47-18-604
Cash price: means the price at which the lessor would have sold the property to the consumer for cash on the date of the rental-purchase agreement. See Tennessee Code 47-18-603
Consumer: means a natural person who rents personal property under a rental-purchase agreement. See Tennessee Code 47-18-603
Consummation: means the time a consumer becomes contractually obligated on a rental-purchase agreement. See Tennessee Code 47-18-603
Contract: A legal written agreement that becomes binding when signed.
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Lessor: means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement. See Tennessee Code 47-18-603
Rental-purchase agreement: means an agreement for the use of personal property by a natural person primarily for personal, family, or household purposes, for an initial period of four (4) months or less (whether or not there is any obligation beyond the initial period) that is automatically renewable with each payment and that permits the consumer to become the owner of the property. See Tennessee Code 47-18-603
(1) A brief description of the leased property, sufficient to identify the property to the consumer and lessor;(2) The number, amount, and timing of all lease payments necessary to acquire ownership of the property;(3) The maximum amount of all initial and periodic payments and other charges to acquire ownership of the property pursuant to the ownership provisions of the rental-purchase agreement;(4) 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;(5) 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;(6) 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;(7) A statement indicating whether the property is new or used; however, a statement that indicates new property is used is not a violation of this part;(8) A statement of the cash price of the property. Where 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;(9) The total of initial payments required to be paid before consummation of the agreement or delivery of the property, whichever is later;(10) A statement clearly summarizing the terms of the consumer’s options to purchase;(11) 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(12) The date of the transaction and the identities of the lessor and consumer.(b) With respect to matters specifically governed by the federal Consumer Credit Protection Act, compliance with such act satisfies the requirements of this section.(c) Subsection (a) does 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. § 1667a, 90 Stat. 258, with respect to a rental-purchase agreement entered into with a consumer.
