§ 5-10-401 — Disclosures

Colorado § 5-10-401

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Rental Purchase Agreements

Text

(1) A lessor shall disclose to a lessee in a rental
purchase agreement the information required either by this part 4 or by the
provisions of the federal Consumer Credit Protection Act if the federal Consumer
Credit Protection Act is amended to cover disclosure in a rental purchase
agreement. In a rental purchase agreement, the lessor shall disclose the following:

(a) A brief description of the leased property, sufficient to identify the
property to the lessee and lessor;

(b) The total number of payments and the total amount of such payments
necessary to acquire ownership;

(c) The number, amount, and timing of each payment, including taxes paid to
or through the lessor;

(d) A statement that the lessee will not own the property until the lessee has
made the total number of payments and the total amount of such payments
necessary to acquire ownership;

(e) A statement of all other charges which the lessee may have to pay
together with the amount of any such charge and the conditions under which any
such charge shall be incurred;

(f) If applicable, a statement that the lessee is responsible for the fair market
value of the property if and as of the time it is lost, stolen, damaged, or destroyed;

(g) A statement indicating whether the property is new or used; except that
it is not a violation of this paragraph (g) to indicate that the property is used if it is
actually new;

(h) A statement that, at any time after the first lease payment is made, the
lessee may acquire ownership of the property, and a brief explanation of the price,
formula, or other method for determining the price at which the property may be
purchased;

(i) A brief explanation of the lessee's right to reinstate, and a description of
the amount, or method of determining the amount, of any penalty or other charge
for reinstatement as established in section 5-10-602;

(j) The cash price of the property subject to the rental purchase agreement;
and

(k) A statement of the maintenance services, if any, the lessor will provide
with respect to the property subject to the rental purchase agreement.

(2) In addition to the disclosures required pursuant to subsection (1) of this
section, the lessor shall also make the following disclosure:

NOTICE TO LESSEE -- READ BEFORE SIGNING

(1) DO NOT SIGN THIS BEFORE YOU READ THE ENTIRE AGREEMENT INCLUDING
ANY WRITING ON THE REVERSE SIDE, EVEN IF OTHERWISE ADVISED.

(2) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.

(3) YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN.

(4) YOU HAVE THE RIGHT TO EXERCISE ANY EARLY BUY-OUT OPTION AS
PROVIDED IN THIS AGREEMENT. EXERCISE OF THIS OPTION MAY RESULT IN A
REDUCTION OF YOUR TOTAL COST TO ACQUIRE OWNERSHIP UNDER THIS
AGREEMENT.

(5) IF YOU ELECT TO MAKE WEEKLY RATHER THAN MONTHLY PAYMENTS AND
EXERCISE YOUR PURCHASE OPTION, YOU MAY PAY MORE FOR THE LEASED
PROPERTY.

Legislative History

Source: L. 90: Entire article added, p. 368, � 1, effective January 1, 1991.