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SECTION 2. Subchapter A,
Chapter 92, Business & Commerce Code, is amended by adding Section
92.003 to read as follows:
Sec. 92.003.
POINT-OF-RENTAL DISCLOSURES. (a) If a
merchant's merchandise is not displayed or offered to consumers
primarily for lease under a rental-purchase agreement, the merchant shall
make the following disclosures to a consumer before presenting a
rental-purchase agreement for specific merchandise to the consumer for
execution:
(1) the price for which
the merchant would sell the merchandise to the consumer for cash on the
date of the disclosure;
(2) the amount of the
periodic payments that would be provided for in the agreement if it is
executed on the date of the disclosure; and
(3) the total number and
amount of periodic payments necessary to acquire ownership of the
merchandise under the agreement if it is executed on the date of the
disclosure.
(b) The disclosures
required by Subsection (a) must be made separately from the rental-purchase
agreement.
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SECTION 2. Subchapter A,
Chapter 92, Business & Commerce Code, is amended by adding Section
92.003 to read as follows:
Sec. 92.003.
POINT-OF-RENTAL DISCLOSURES. (a) If merchandise is not displayed or offered
to consumers primarily for lease under a rental-purchase agreement, the
merchant shall make the following disclosures to a consumer before
presenting a rental-purchase agreement for specific merchandise to the
consumer for execution:
(1) the price for which
the merchant would sell the merchandise to the consumer for cash on the
date of the disclosure;
(2) the amount of the
periodic payments that would be provided for in the agreement if it is
executed on the date of the disclosure; and
(3) the total number and
amount of periodic payments necessary to acquire ownership of the
merchandise under the agreement if it is executed on the date of the
disclosure.
(b) The disclosures
required by Subsection (a) must be made separately from the rental-purchase
agreement.
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SECTION 3. Subchapter B,
Chapter 92, Business & Commerce Code, is amended by adding Section
92.0535 to read as follows:
Sec. 92.0535.
ACKNOWLEDGMENT REQUIRED FOR CERTAIN AGREEMENTS. If a merchant's merchandise is not displayed or offered to
consumers primarily for lease under a rental-purchase agreement, the
merchant shall provide to the consumer at the time the agreement is
presented to the consumer the additional disclosures prescribed by this
section. The disclosures must:
(1) be entitled
"Acknowledgment of Rental-Purchase Transaction";
(2) be on a separate
page;
(3) be signed by the
consumer before the consumer signs the
agreement; and
(4) include an
acknowledgment that the consumer understands the consumer is entering into
a rental-purchase agreement and that:
(A) under the agreement,
the consumer does not own the merchandise but may acquire ownership rights
by complying with the ownership option terms specified in the agreement;
(B) the agreement is not
a credit transaction;
(C) the consumer has the
right to return the merchandise at any time without additional charge or
penalty, and, on the merchandise's return, the consumer will owe only
unpaid rental charges and fees;
(D) if the consumer fails
to make a timely payment, the consumer has a right to reinstate the
agreement as provided by the agreement and, if the merchandise is returned,
the consumer is entitled to rent the same merchandise or substitute
merchandise of comparable quality and condition if the consumer complies
with the agreement and any applicable law; and
(E) the consumer has
reviewed and understands the agreement, including the consumer's right and
options to acquire ownership of the merchandise and the total cost of the
merchandise if all scheduled payments are made.
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SECTION 3. Subchapter B,
Chapter 92, Business & Commerce Code, is amended by adding Section
92.0535 to read as follows:
Sec. 92.0535.
ACKNOWLEDGMENT REQUIRED FOR CERTAIN AGREEMENTS. If merchandise is not
displayed or offered to consumers primarily for lease under a
rental-purchase agreement, the merchant shall provide to the consumer at
the time the agreement is presented to the consumer the additional
disclosures prescribed by this section. The disclosures must:
(1) be entitled
"Acknowledgment of Rental-Purchase Transaction";
(2) be on a separate
page;
(3) be signed by the
consumer; and
(4) include an
acknowledgment that the consumer understands the consumer is entering into
a rental-purchase agreement and that:
(A) under the agreement,
the consumer does not own the merchandise but may acquire ownership rights
by complying with the ownership option terms specified in the agreement;
(B) the agreement is not
a credit transaction;
(C) if provided by the agreement, the
consumer has the right to return the merchandise at any time without
additional charge or penalty, and, on the merchandise's return, the
consumer will owe only unpaid rental charges and fees;
(D) if the consumer fails
to make a timely payment, the consumer has a right to reinstate the
agreement as provided by the agreement and, if the merchandise is returned,
the consumer is entitled to rent the same merchandise or substitute
merchandise of comparable quality and condition if the consumer complies
with the agreement and any applicable law; and
(E) the consumer has
reviewed and understands the agreement, including the consumer's right and
options to acquire ownership of the merchandise and the total cost of the
merchandise if all scheduled payments are made.
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