§ 57-26-6 — Prohibited provisions

A rental-purchase agreement shall not contain: A. a confession of judgment; B. a negotiable instrument; C. a security interest or any other claim of a property interest in any property of the consumer; D. a wage assignment; E. a waiver by the consumer of claims or defenses; F. a provision authorizing the lessor or a person acting on the lessor's behalf to enter upon the consumer's premises unlawfully or to commit any breach of the peace in the repossession of goods; G. a provision requiring the purchase of insurance or a liability damage waiver from the lessor for goods that are the subject of the rental-purchase agreement; H. a provision that mere failure to return goods constitutes probable cause for a criminal action; I. a provision requiring the consumer to make a payment in addition to regular periodic payments in order to acquire ownership of the goods or a provision requiring the consumer to make periodic payments totaling more than the dollar amount necessary to acquire ownership as disclosed pursuant to Section 5 [57-26-5 NMSA 1978] of the Rental-Purchase Agreement Act; J. a provision for more than one reinstatement fee on any one periodic payment, regardless of the period of time during which it remains unpaid; or K. a provision for a late charge or any other type of charge or penalty for reinstating a rental-purchase agreement, other than a reinstatement fee; however, a lessor may use the term "late charge" or a similar term to refer to a reinstatement fee.

Legislative History

Laws 1995, ch. 38, § 6.