Section 45.35.010. Disclosure of information.

   (a) A lessor shall disclose clearly and conspicuously in writing in a lease-purchase agreement each of the following items that applies to the lease-purchase agreement or to the personal property leased under the agreement:
        (1) the total number of payments, the total monetary amount of all payments, and the timing of all payments that are to be made before the consumer acquires ownership of the personal property;
        (2) a statement that the consumer will not own the personal property until the consumer makes all of the payments necessary to acquire ownership;
        (3) a statement that the consumer must pay the lessor the fair market value of the personal property if, and as of the date, the personal property is lost, stolen, damaged, or destroyed;
        (4) a brief description, including an identification number if available, of the personal property that is sufficient to identify the property to the consumer and the lessor;
        (5) a statement whether the personal property is new or used;
        (6) a brief description of any existing damage to the leased personal property;
        (7) the cash price of the property, except that, if the agreement involves a lease of more than one item as a set, the aggregate cash price of all items is sufficient;
        (8) the total initial payment made or required when or before an individual becomes liable on the agreement or when the personal property is delivered, whichever event is later;
        (9) a statement that the total monetary amount of the lease payment does not include other charges under the agreement, including late fees, processing fees, default charges, pick-up charges, and reinstatement fees, and a list of these other charges;
        (10) a statement clearly summarizing the terms of the consumer's option to purchase the personal property, including a statement that the consumer has the right to exercise an early purchase option, and the price, formula, or method to be used to determine the price at which the property may be purchased;
        (11) a statement describing the lessor's responsibilities under AS 45.35.020;
        (12) the date that the lease-purchase agreement is entered into;
        (13) the names, street addresses, and mailing addresses of the lessor and consumer;
        (14) a statement that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the personal property in good repair, ordinary wear and tear excepted, when the agreement expires and by paying any payment past due under the agreement; and
        (15) notice of the right of the consumer to reinstate the agreement under AS 45.35.050.
   (b) The disclosures under (a) of this section must appear on the face of the document containing the lease-purchase agreement and above the line for the consumer's signature. The lessor shall provide the consumer with a copy of the lease-purchase agreement after the consumer signs the agreement.
   (c) If a disclosure under (a) of this section becomes inaccurate as the result of an act, occurrence, or agreement by the consumer after receiving a copy of the lease-purchase agreement, the resulting inaccuracy is not a violation of this chapter.
   (d) If a lessor complies with the disclosure requirements under 15 U.S.C. 1601 - 1693r (Consumer Credit Protection Act) that are applicable to a lease-purchase agreement, the lessor's compliance satisfies the disclosure requirements of this section.

Authorities

45.35.060

Notes

References

AS 45.35.060 Application of disclosure requirements upon occurrence of subsequent events.

History

(Sec. 2 ch 10 SLA 1999)