Montana Code 30-19-114. Renegotiation of rental-purchase agreement — extension not considered renegotiation
30-19-114. Renegotiation of rental-purchase agreement — extension not considered renegotiation. (1) A renegotiation of an agreement must occur when an existing agreement is satisfied and replaced by a new agreement between the lessor and the consumer. A renegotiation is considered a new agreement and requires new disclosures as provided for in 30-19-110. The following events may not be treated as a renegotiation:
Terms Used In Montana Code 30-19-114
- agreement: means an agreement between a lessor and a consumer that has the following characteristics:
(a)the agreement governs the use of personal property by a person primarily for personal, family, or household purposes;
(b)the agreement is entered into for an initial period of 4 months or less and is automatically renewable with each payment after the initial period;
(c)the agreement does not obligate or require the consumer to continue renting or using the property beyond the initial period; and
(d)the agreement permits the consumer to become the owner of the property. See Montana Code 30-19-103
- Consumer: means a person who rents personal property under a rental-purchase agreement to be used primarily for personal, family, or household purposes. See Montana Code 30-19-103
- Lessor: means a person who regularly provides the use of property through rental-purchase agreements and to whom rent payments are initially payable on the face of the rental-purchase agreement. See Montana Code 30-19-103
- Property: means real and personal property. See Montana Code 1-1-205
(a)the addition or return of property in a multiple-item agreement or in the substitution of the rental property, if in either case the average payment allocable to a payment period is not changed by more than 25%;
(b)a deferral or extension of one or more periodic payments or portions of a periodic payment;
(c)a reduction in charges in the agreement; or
(d)an agreement involved in a court proceeding.
(2)An extension of an agreement is not a renegotiation.