§ 5-10-701 — Lessee's remedies - reinstatement

(1) A lessee who breaches
any rental purchase agreement, including but not limited to the failure to make
timely rental payments, has the right to reinstate the original rental purchase
agreement without losing any rights or options previously acquired under the rental
purchase agreement if both of the following apply:

(a) Subsequent to having failed to make a timely rental payment, the lessee
has promptly surrendered the property to the lessor, in the manner as set forth in
the rental purchase agreement, and if and when requested by lessor; and

(b) Not more than sixty days have passed since the lessee returned the lease
property; except that if the lessee has made more than sixty percent of the total
number of payments required under the rental purchase agreement to acquire
ownership, such sixty-day period shall be extended to a one-hundred-twenty-day
period.

(2) As a condition precedent to reinstatement of the rental purchase
agreement, a lessor may collect a reinstatement fee as set forth in section 5-10-602, plus delivery charges allowable by section 5-10-601 (2) if redelivery of the item
is necessary.

(3) If reinstatement occurs pursuant to this section, the lessor shall provide
the lessee with either the same item leased by the lessee prior to reinstatement or
a substitute item of equivalent quality and condition. If a substitute item is provided,
the lessor shall provide the lessee with all the information required by section 5-10-401.

Legislative History

Source: L. 90: Entire article added, p. 373, � 1, effective January 1, 1991.