§ 5-10-502 — Prohibited provisions

(1) A rental purchase agreement shall not
contain a provision requiring any of the following:

(a) Assignment of earnings. No lessor shall accept an assignment of
earnings from the lessee for payment or as security for payment of a charge arising
out of a rental purchase agreement. An assignment of earnings in violation of this
paragraph (a) is unenforceable by the assignee of the earnings and revocable by
the lessee. This paragraph (a) shall not prohibit a lessee from voluntarily authorizing
deductions from his earnings if the authorization is revocable and otherwise
permitted by law.

(b) Authorization to confess judgment. No lessor shall take or accept a
power of attorney or other authorization from the lessee, or other person acting on
his behalf, to confess judgment.

(c) Waivers. No lessor may require a lessee to waive service of process or to
waive any defense, counterclaim, or right of action against the lessor, or a person
acting on the lessor's behalf as the lessor's agent in collection of payments under
the lease or in the repossession of the lease property.

(d) Breach of the peace. No lessor may require a lessee to authorize the
lessor or a person acting on the lessor's behalf to enter unlawfully upon the
lessee's premises or to commit any breach of the peace in the repossession of the
lease property.

(e) Garnishment of wages. No lessor may require a lessee to authorize a
prejudgment garnishment of the lessee's wages.

Legislative History

Source: L. 90: Entire article added, p. 370, � 1, effective January 1, 1991.