(a) A renegotiation occurs when an existing rental-purchase agreement is satisfied and replaced by a new lease agreement undertaken by the same consumer. A renegotiation is a new agreement requiring new disclosures. However, events such as the following shall not be treated as renegotiations:

Terms Used In Tennessee Code 47-18-609

  • Attorney general: means the attorney general and reporter, or the attorney general and reporter's designee. 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
  • 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
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • 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) The addition or return of property in a multiple item agreement or the substitution of lease property, if in either case the average payment allocable to a payment period is not changed by more than twenty-five percent (25%);
(2) A deferral or extension of one (1) or more periodic payments, or portions of a periodic payment;
(3) A reduction in charges in the agreement;
(4) An agreement involving a court proceeding; and
(5) Any other event described in regulations prescribed by the attorney general.
(b) No disclosures are required for any extension of a rental-purchase agreement.
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