Lease-purchase Agreement Act

The act regulates lease-purchase transactions, in which a lessee rents goods with the option of eventually acquiring ownership, and sets the boundaries of its own coverage by defining the agreements it reaches and exempting certain transactions from its terms and from other bodies of law. Its central mechanism is mandatory disclosure: lessors must give lessees specified information about the agreement in a prescribed form, keep records and furnish receipts, and observe standards governing how lease-purchase terms may be advertised. It further bars a list of practices in these agreements, provides for reinstatement of a lapsed agreement and for renegotiations and extensions, and backs those requirements with enforcement authority and penalties.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.