Guam § 57106 - Agreement Provisions.

§ 57106. Agreement Provisions.

(a) In General. Each rental-purchase agreement shall:

(1) provide a brief description of the rented property sufficient to

identify the rented property to the consumer and merchant. (If a rental

is for multiple items of property, a description of each item may be

provided in a separate statement incorporated by reference

agreement.);

(2) state that the consumer is not required to purchase insurance

or liability damage waiver for the property that is the subject of the

agreement from the merchant or from any other party owned or

controlled by the merchant;

(3) provide a statement of any obligation of the consumer and the

merchant under the agreement to repair any defect or malfunction of

the property covered by the agreement, and any limitation of those

obligations;

COL120106

(4) provide that the consumer may terminate the agreement

without penalty by voluntarily surrendering or returning the property

covered by the agreement upon expiration of any rental term; and

(5) contain a provision for reinstatement of the agreement, which

at a minimum:

(A) permits a consumer who fails to make a timely rental

renewal payment to reinstate the agreement, without losing any

rights or options which exist under the agreement, by the payment

of all past due rental charges and any late fee or other charge,

within seven (7) business days after the renewal date if the

consumer pays monthly, or within three (3) business days after

the renewal date if the consumer pays more frequently than

monthly;

(B) if the consumer returns or voluntarily surrenders the

property covered by the agreement, other than through judicial

process, during the applicable reinstatement period set forth in

Subparagraph (A), permits the consumer to reinstate the

agreement during a period of at least thirty (30) days after the

date of the return or surrender of the property by the payment of

all past due rental charges, and any applicable redelivery, repair

or late fees; and

(C) if the consumer has paid sixty percent (60%) or more of

the total dollar amount of payments necessary to acquire

ownership of the property under the agreement and returns or

voluntarily surrenders the property, other than through judicial

process, during the applicable reinstatement set forth in

Subparagraph (A), permits the consumer to reinstate the

agreement during a period of at least ninety (90) days after the

date of the return of the property by the payment of all past due

rental charges and any applicable redelivery, repair or late fees.

(b) Construction. Subsection (a) shall not be construed to prevent a

merchant from attempting to repossess property during the reinstatement

period pursuant to Subsection (a)(5)(A), but such a repossession does not

affect the consumer's right to reinstate. Upon reinstatement the merchant

shall provide the consumer with the same property, if available; if it is not

available the merchant shall substitute property of comparable quality and

condition.

COL120106