2023 Iowa Code › Title XIII - COMMERCE › Chapter 537 - CONSUMER CREDIT CODE › Section 537.3606 - Form requirements.

537.3606 Form requirements.
1. The disclosure information required by section 537.3605 and this section shall be disclosed in a consumer rental purchase agreement, and shall meet the following requirements:
a. Be made clearly and conspicuously with items appearing in logical order and segregated as appropriate for readability and clarity.
b. Be made in writing.
c. Except as provided in subsection 2 or in rules adopted by the administrator, need not be contained in a single writing or made in the order set forth in section 537.3605.
d. May be supplemented by additional information or explanations supplied by the lessor, but none shall be stated, used or placed so as to mislead or confuse the lessee, or to contradict, obscure, or detract attention from the information required by section 537.3605, and so long as the additional information or explanations do not have the effect of circumventing, evading, or unduly complicating the information required to be disclosed by section 537.3605.
2. The lessor shall disclose all information required by section 537.3605 before the consumer rental purchase agreement is consummated. These disclosures shall be made on the face of the writing evidencing the consumer rental purchase agreement.
3. Before any payment is due, the lessor shall furnish the lessee with an exact copy of each consumer rental purchase agreement, which shall be signed by the lessee and which shall evidence the lessee’s agreement. If there is more than one lessee in a consumer rental purchase agreement, delivery of a copy of the consumer rental purchase agreement to one of the lessees constitutes compliance with this part; however, a lessee not signing the agreement is not liable under it.
4. The administrator may adopt by rule requirements for the order, acknowledgment by initialing, and conspicuousness of the disclosures set forth in section 537.3605. These rules may allow these disclosures to be made in accordance with model forms prepared by the administrator.
5. The terms of the consumer rental purchase agreement, except as otherwise provided in this part, shall be set forth in not less than eight point standard type, or such similar type as prescribed in rules adopted by the administrator.
6. Every consumer rental purchase agreement shall contain immediately above or adjacent to the place for the signature of the lessee, a clear, conspicuous, printed or typewritten notice in substantially the following language:
NOTICE TO LESSEE — READ BEFORE SIGNING
[1] Do not sign this before you read the entire agreement including any writing on the reverse side, even if otherwise advised.
[2] Do not sign this if it contains any blank spaces.
[3] You are entitled to an exact copy of any agreement you sign.
[4] You have the right to exercise any early buy-out option as provided in this agreement. Exercise of this option may result in a reduction of your total cost to acquire ownership under this agreement.
[5] If you elect to make weekly rather than monthly payments and exercise your purchase option, you may pay more for the leased property.
7. The notice described in subsection 6 shall be in boldface, ten point type.
87 Acts, ch 80, §6; 2022 Acts, ch 1032, §90
Referred to in §537.3612
Subsection 6 amended