75-24-161 - Provisions not permitted in rental-purchase agreements.

§ 75-24-161. Provisions not permitted in rental-purchase agreements.
 

A rental-purchase agreement may not contain: 
 

(a) A confession of judgment; 

(b) A negotiable instrument; 

(c) A security interest or any other claim of a property interest in any property except that property delivered by the lessor pursuant to the rental-purchase agreement; 

(d) A wage assignment; 

(e) A waiver by the consumer of claims or defenses; 

(f) A provision authorizing the lessor or a person acting on the lessor's behalf to enter upon the consumer's premises without permission or to commit any breach of the peace in the repossession of property; 

(g) A provision for a late charge or any other type of charge or penalty for reinstating a rental-purchase agreement in addition to a reinstatement fee; however, a lessor may use the term "late charge" or a similar term to refer to a reinstatement fee; or 

(h) A provision for more than one (1) reinstatement fee on any one (1) periodic payment regardless of the period of time for which it remains unpaid. 
 

Sources: Laws,  1995, ch. 485, § 6, eff from and after July 1, 1995.