reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2405 - Lease advertisements

All advertisements made of a lease, shall divulge, clearly and adequately, the terms and conditions of the same, including the type of lease, initial payment, if any, number of payments and their amount, whether or not the lessee has the option to buy the leased chattel or not, and the residual value thereof, if any.
History —Aug. 13, 1994, No. 76, § 7, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2406 - Leases of sixty thousand dollars ($60,000) or less

In those cases of financial leases of sixty thousand dollars ($60,000) or less, the lessor shall be bound to use maximum diligence in determining if the property is to be used for commercial or consumer purposes.
History —Aug. 13, 1994, No. 76, § 8; Aug. 21, 1999, No. 294, § 2.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2407 - Selection, inspection, delivery and acceptance

The lessee may freely select the supplier of the personal property subject to the lease contract. Once the personal property is inspected, if the chattel meets the lessee’s requirements, he/she shall request the lessor to deliver it. After the delivery is made, the lessee shall sign a Delivery Receipt and hand over the down payment, as agreed. If the lessee does not sign, the lessor shall not be bound to pay the sale price to the supplier.
At any moment, the lessee may desist from the contract, without any penalty, until the moment the chattel is delivered or its possession is acquired. Once the chattel is accepted and the delivery receipt is acquired, the lessor shall process, prepare and remit the payment in the amount of the amount to the supplier, as agreed.
The lessee may request the lessor to advance the payments of the chattel’s cost or issue purchase orders or commitments to the supplier, in which case, the lessee shall be bound from said moment, as long as the chattel received meets the required specifications.
History —Aug. 13, 1994, No. 76, § 9, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2408 - Ownership, possession, use and enjoyment

The lessor is the owner of the chattel subject to the lease contract. The lessee, who has its possession, may use and enjoy the chattel, provided he/she does not fail to comply with the clauses stipulated in the contract. If he/she does not comply with the same, the lessor may file those pertinent and necessary legal actions in order to compel the lessee to meet the obligation to which he/she voluntarily submitted.
When the chattel subject to the lease contract is a motor vehicle subject to a lease contract, the title holder of the personal property shall be deemed to be the person to whom, through the lease contract, is ceded the possession, use and enjoyment of the personal property subject to the contract.
The lessor shall be responsible before the lessee or before third parties in the exclusive operating lease, only if product liability, compensation for defects and product warranties exist.
The preceding provisions shall not alter the responsibilities and obligations the lessor would be bound to, when the figures of the representative of the manufacturer or the authorized distributor coincide in the former, under the Motor Vehicle Warranty Act.
History —Aug. 13, 1994, No. 76, § 10; Sept. 6, 1996, No. 192, § 3, eff. 30 days after Sept. 6, 1996.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2409 - Maintenance and conservation

The lessee is bound to conserve and keep the leased chattel in good condition, with the exception of its normal depreciation and fair wear and tear. He/She is also committed to use the chattel solely for the purposes established in the lease contract, including those incidental and necessary uses.
With the exception of any agreement to the century, the lessee shall assume and pay those expenses inherent to ownership rights such as personal property taxes, insurance and expenses needed for the preservation and maintenance of the chattel. Without it being understood as a limitation, preservation and maintenance expenses shall be understood to be such repairs and necessary expenses for the proper functioning of the chattel. Notwithstanding the above, in case of operative leases, the lessor may agree to assume the responsibility for such expenses.
If it is necessary for the chattel’s conservation and in order to preserve its value, the lessor may incur conservation and maintenance expenses, as defined in the previous paragraph, and to request the reimbursement thereof from the lessee, provided he/she has been previously notified in writing, and has been given the option to make them.
History —Aug. 13, 1994, No. 76, § 11, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2410 - Written consent of the lessor for the removal of the chattel

The lessee shall previously request the written consent of the lessor, for the removal of the chattel from the place indicated in the lease contract, without this being understood as a limitation to the full use of the leased chattel when it is an automatic item.
History —Aug. 13, 1994, No. 76, § 12, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2411 - Insurance

The lessor may demand insurance coverage on the leased chattel for the original term of the contract, as one of the requirements for the execution of the lease contract.
The limits and coverage of the insurance policy shall be those that cover losses, physical damage to the chattel, and public liability.
Said policies shall include the lessor as the beneficiary and additional insured person.
The lessor may apply for an insurance contract in the lessee’s name, after obtaining his/her approval. In addition, the lessor shall provide the lessee with a copy of the insurance certificate or policy as soon as he/she obtains it from the insurance company.
Every institution engaged in financing the acquisition of motor vehicles by individuals, through a lease, shall provide to each individual requesting said financing, a form stating the following written notice in a clear and prominent text and in captions:
“IMPORTANT NOTICE: IT IS THE RIGHT OF EVERY CONSUMER TO CHOOSE HIS/HER PREFERRED INSURANCE AGENT OR BROKER OR INSURANCE COMPANY TO OBTAIN ANY INSURANCE NEEDED IN RELATION TO THE ACQUISITION OF A MOTOR VEHICLE. NO FINANCIAL INSTITUTION SHALL REQUIRE THAT THE CONSUMER OBTAIN, AS A CONDITION FOR THE FINANCING OF SAID VEHICLE, INSURANCE FROM A PARTICULAR AGENT OR BROKER OR INSURANCE COMPANY. HOWEVER, THE FINANCIAL INSTITUTION MAY ESTABLISH STANDARDS IN TERMS OF THE TYPE OF INSURANCE COVERAGE OR THE EXTENT OF FINANCIAL SOLIDITY IT SHALL REQUIRE FROM THE INSURANCE COMPANY.”
Furthermore, before the applicant signs the aforesaid loan or financial lease contract, the financial institution shall obtain from the individual a written confirmation that he/she received the notice described above. The financial institution shall keep said confirmation in its records during the effective term of the contract.
The insurance payout for a claim for damages to an insured vehicle shall not be retained nor applied by the financial institution to the vehicle’s lease payments in arrears or to other debts existing between the buyer and the financial entity generated under other contracts or obligations. The insurance payment shall be issued in the name of the lessee of the financial institution that meets the requirements of §§ 2131-2144 of Title 20, and with Regulations No. 3590 of the Department of Consumer Affairs. To such effects, the acceptance of a quote from the body shop shall be understood as the three parties have agreed to repair the damages of the vehicle.
History —Aug. 13, 1994, No. 76, § 13; July 23, 2008, No. 126, § 1, eff. 90 days after July 23, 2008; Feb. 9, 2012, No. 41, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2412 - Warranties

The provider is bound to deliver to the lessee, together with the chattel, a document in which the obligations, promises and warranties, as well as the modifications, limitations and exclusions of the same, are established.
The lessee shall have the right to claim compliance with the obligations, promises and warranties from the provider, and may also claim compensation for hidden defects in the chattel. If the lessee does not claim the rights he/she has against the provider, the lessor can claim them. Any promise statement or description made by the provider to the lessee regarding the leased chattel, through the use of samples, models or suggestions, shall constitute a warranty of the provider to the lessee that the chattel shall conform to such a promise, description or statement.
In the case whereby the chattel subject to the lease is a motor vehicle and the lease involved is not an exclusive operating lease, the provider shall deliver to the lessee evidence of payment of the taxes corresponding to the leased motor vehicle.
History —Aug. 13, 1994, No. 76, § 14; Sept. 6, 1996, No. 192, § 4, eff. 30 days after Sept. 6, 1996.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2413 - Purchase option

In all financial lease contracts, the lessor shall be bound to grant to the lessee the option to acquire the leased chattel when the lease term expires. In cases of open financial leases, the price shall not be greater than the residual, together with any other amount owed.
In operative and closed lease contracts, the lessor is not bound to execute a purchase option contract, provided he/she records it in the original lease contract.
History —Aug. 13, 1994, No. 76, § 15, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2414 - Application of rates and other payments

The lessor is bound to credit all rates and other payments made by the lessee pursuant to the lease contract and shall not apply the same to other existing debts between both of them generated by other contracts or obligations.
Any compensation received as a result of a claim for the loss or damage to the leased chattel shall be used to cover the costs of the damage to the chattel. If the amount received is insufficient to cover the loss, the lessee shall be liable for covering the costs in excess of what was received to repair the chattel.
The application of this section shall be mandatory for consumer leases and financial leases in which the leased chattel is a motor vehicle. In all other kinds of leases, compliance with this section shall be required unless the parties agree otherwise.
History —Aug. 13, 1994, No. 76, § 16, eff. 60 days after Aug. 13, 1994; Feb. 9, 2012, No. 41, § 2.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2415 - Pledging or ceding of the contract

The lessee shall not cede the lease without the prior written consent of the lessor. If the lessee cedes the lease, without the proper consent it shall be considered as if (it had never been ceded) the cession was not made.
The lessor shall not oppose the execution of an assignment of contract between the lessee and a third person, unless the latter does not qualify because of his/her credit rating or any other justified cause.
The lessee may bring any claims or defense against an assignee of the lease contract that he/she could have against the assignor lessor.
The lessor who assigns a lease contract or contracts shall notify the respective lessee or lessees, in writing by certified mail with acknowledgment of receipt, within a term of sixty (60) days from the date the cession was made. If there is no such notice and the lessee is unaware of the assignment, the payment made by the latter to the last known lessor, shall be construed as proper and shall clear the lessee.
History —Aug. 13, 1994, No. 76, § 17, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2416 - Closed lease—Expiration of term

In closed lease cases, when the term of the contract has expired, the lessee is bound to voluntarily hand over the leased chattel when due. This shall not apply in those cases in which the lessee has an option to purchase previously granted by the lessor. The lessee shall also pay the expenses incurred for the delivery and transportation of the leased chattel.
If the lessee does not deliver the leased chattel, the lessor may file a civil suit to recover the personal property from the lessee, in addition to the expenses incurred in filing the suit. The lessee shall also be liable for damages to the chattel until he/she delivers it or the lessor recovers it with the court’s assistance.
History —Aug. 13, 1994, No. 76, § 18, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2417 - Open financial lease—Expiration; options

Upon expiration of the term of the open financial lease, the lessor shall have the following options:
(a) Acquire ownership of the chattel, paying the residual value and any other unpaid amount established in the lease.
(b) Turn in the leased chattel.
(c) The lessee, through an agreement with the lessor, may lease the chattel again in a lease where the total amount of the rates shall not be less than the residual value. During the original term, the lessor may refuse to re-lease the chattel to the lessee.
If the lessee continues to hold the leased chattel with the lessor’s consent, the lease shall be considered to be renewed under the terms and conditions provided in the original contract. This new contract shall remain in effect until the residual plus the corresponding financing costs are covered.
History —Aug. 13, 1994, No. 76, § 19, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2418 - Open financial lease—Turning in of chattel; lessee’s responsibilities

In the event the leased chattel is turned in, the lessor shall be bound to dispose of it, meeting the requirements in § 2424 of this title entitled “Procedures to sell”. In this case, the lessee’s responsibility shall consist in answering for one of the sums provided herein, as the case may be.
(1) The difference between the residual value provided in the lease contract and the cash value, if the leased chattel is sold. If the cash value exceeds the residual value established in the contract, the lessor shall hand over said excess to the lessee.
(2) The difference between the residual value and the present value of the new lease, if the chattel is [relet].
If after the terms provided in § 2424 of this title, entitled “Procedures to sell” expire, and the chattel has not been purchased or [relet], the lessee shall give a credit to the lessor of the Residual Value established in the contract plus any other amount pending thereunder. Once the payment is made, the lessor shall transfer the chattel’s ownership to the lessee.
History —Aug. 13, 1994, No. 76, § 20, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2419 - Language

Every lease shall be drafted in Spanish or English, according to the lessee’s preference.
History —Aug. 13, 1994, No. 76, § 21, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2421 - Consumer lease—Delinquency

In the consumer leases, the lessee shall pay the rate agreed upon in the contract when due. Ten (10) days after its due date, it shall be deemed overdue. Once it is overdue, the lessor shall notify the lessee in writing of delinquency and shall grant him/her a term of twenty (20) days to pay the outstanding payment or payments, plus the penalty for arrearage.
The lessee shall also be notified that if the payment is not made within said term of twenty (20) days, a suit may be filed for repossession of the chattel and/or collection of money, pursuant to the applicable laws and regulations, at the lessor’s discretion.
The penalty for arrears may be charged only once for each delay rate, regardless of the time that each payment is in arrears.
History —Aug. 13, 1994, No. 76, § 23, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2422 - Consumer lease—Lessee’s liability for failure to comply

If the lessee fails to comply with the consumer lease, the lessor may rescind the contract and recover the following sums from the lessee:
(a) In case of voluntary surrender of the leased chattel:
(1) The total amount of the rates owed under the leased contract less the financing charges not accrued at the moment of surrender, computed through the reimbursement method known as the “sum of the digits or Rule 78.”
(2) Residual value stipulated in the lease, if any.
(3) The reasonable expenses incurred to repair the leased chattel in order to ready it to be offered for sale or lease, or its market price if it is less than the cost of repair.
(4) If the chattel is seized by judicial action, in addition to that stated in clauses (1), (2) and (3) of this subsection, the lessee shall be liable for the financing charges until the moment the judgment is pronounced and shall pay the lawyer’s fees and expenses, as stipulated in the contract.
(b) The lessor shall credit the following sums to the lessee:
(1) The cash value of the leased chattel, if it is sold, free from any costs and expenses inherent to the disposal of the chattel.
(2) The present value under the new contract, if the leased chattel is re-leased by the lessor.
(c) If the lessee fully meets clauses (1), (2), and (3) of subsection (a) of this section to the lessor’s satisfaction, and he/she agrees to pay the 5% of the sum of clauses (1), (2) and (3) within a period not greater than 15 days after its surrender, said lessee may recover the chattel, in which case, the lessor shall be found to transfer the chattel’s ownership to the lessee.
History —Aug. 13, 1994, No. 76, § 24, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2423 - Repossession procedure

(a) In the financing leases, the lessor shall have the option to file a repossession procedure by presenting a sworn and written statement declaration before the Clerk of the Court of competent jurisdiction in the case, stating that the lessee has not met the terms of the lease contract.
(b) Upon receiving the sworn statement and a copy of the lease agreement, the Clerk of the Court shall charge the fees established in §§ 1476 et seq. of Title 32, and shall summon the interested parties, in writing, for a hearing that shall take place before the competent court within ten (10) days following the date of the summons, to hear the case.
(c) At said hearing, the court shall determine whether the lessee has not met the terms of the lease, in which case it shall issue an order providing that the Marshall shall repossess the leased goods, which he/she shall deliver to the lessor, subject to the provisions of this chapter. The Marshall shall consign the fact of the repossession on the back of the sworn statement and the delivery of the leased goods, describing it in detail and shall hand the lessor a copy of the sworn statement and of the service on the back thereof, on which he/she shall consign the place, date and hour of the repossession and shall remit the original documents to the Clerk of the Court. When the court Marshall receives the above mentioned sworn statement, he/she shall charge the amount stated in §§ 1476 et seq. of Title 32, which he/she shall cancel in internal revenue stamps, and which includes the cost of notation in the Office of the Clerk of the Court.
The court shall also issue a judgment sentencing the lessee to pay the corresponding amounts pursuant to the contract and those provided in this chapter.
History —Aug. 13, 1994, No. 76, § 25; Aug. 12, 1999, No. 229, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2424 - Financial lease—Procedure for the sale of assets

When the lessee is in default with the lease and the lessor takes possession of the leased chattel whether by surrender or repossession by judicial process, he/she may entertain bids from third parties and shall notify the lessee of them by certified mail. The lessee shall have a term of fifteen (15) days to improve the bid and acquire the chattel or pay what is owed. After this term expires, if the lessee has not improved the bid, the lessor shall proceed to sell the chattel to the person who has made the best offer or has established a lease in said amount. If after the lessor acquires ownership of the leased chattel, he/she does not succeed in getting purchase offers from third parties within a term of fifteen (15) days, he/she shall notify this fact to the lessee and shall grant him/her a time period of fifteen (15) days for him/her to find a buyer or to pay what is owed. The terms established herein may vary from what was agreed upon only in those leases which are not consumer leases.
If there is a profit from the difference between the cash value and the balance owed by the lessee, the lessor shall pay the difference to the lessee. Otherwise, if there is a deficit because of a discrepancy in the amount to be received for the sale and the balance owed by the lessee, the latter shall pay said difference to the lessor.
History —Aug. 13, 1994, No. 76, § 26, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2425 - Consumer lease—Advanced liquidation

A lessee who is not in arrears nor delinquent may settle the lease before the term originally established in the contract under the following circumstances:
(1) Through the payment of the present value of the contract as of the due date; in which case, the lessor shall not be able to collect interest on the portion of the cost of the chattel paid in advance. However, he/she may collect compensation not to exceed 5% of the balance paid in advance or that equal to one month’s installment, whichever is less.
The lessee shall have the right to be reimbursed for any other charge ascribed to unaccrued installments paid in advance.
Once the amounts mentioned in the above paragraph are paid, the lessor shall transfer ownership of the chattel to the lessee.
The use of the reimbursement method known as “Sum of digits or Rule 78”, is permitted in consumer leases that do not exceed a sixty (60) month contract.
(2) In the case of consumer leases, through the voluntary surrender of the leased chattel with the purpose of liquidating the debt of the chattel’s pending cash value, with the value obtained through the exercise of receiving bids, as provided in § 2424 of this title.
If the lessee, after the above mentioned process is begun, understands that said transaction is not convenient, he/she may opt, within the term of ten (10) days, after being informed of the highest bid and the pending balance in the lessor’s books, to recover the chattel and continue the original contract with the lessor until its expiration. If the lessee decides to cancel the advanced liquidation, he/she may continue the original contract. For this, he/she shall be bound to pay any reasonable expenses incurred by the lessor in exercising the request for bids for the leased chattel.
History —Aug. 13, 1994, No. 76, § 27, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 220 - Regulation of Personal Property Lease Contracts Act (§§ 2401 — 2426) › § 2426 - Penalties

Any natural or juridical person, who intentionally violates the provisions of this chapter, shall be guilty of a misdemeanor and upon conviction shall be punished with a fine not greater than five hundred dollars ($500) or imprisonment for a term that shall not exceed six (6) months, or both penalties, at the discretion of the court.
The Commissioner shall also be able to impose administrative fines, not to exceed ten thousand dollars ($10,000) for each violation of a provision of the norms and regulations promulgated by virtue thereof.
History —Aug. 13, 1994, No. 76, § 28, eff. 60 days after Aug. 13, 1994.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 221 - Regulation of Furniture Repair Business (§§ 2431 — 2435) › § 2431 - Explanatory estimate

No person engaged in the business of repairing personal property shall receive for analysis or repair any personal property whatsoever without handing to the owner a receipt specifying the following:
(a) Cost of the estimate, if any.
(b) Whether the amount charged shall be applied or not to the cost of the repair.
(c) Time that conducting the estimate will take.
(d) Warranty offered should repairs be made.
History —Aug. 31, 2000, No. 272, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 221 - Regulation of Furniture Repair Business (§§ 2431 — 2435) › § 2432 - Authorization

[No person engaged in the business of repairing personal property shall repair said personal property without the prior and written authorization of the owner, after making the corresponding repair estimate.]
History —Aug. 31, 2000, No. 272, § 2.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 221 - Regulation of Furniture Repair Business (§§ 2431 — 2435) › § 2433 - Charging without repair, prohibited

No person engaged in the business of repairing personal property shall be impeded from charging an amount of money on account of the estimate when the personal property analyzed is unserviceable.
In these cases, the person shall notify the owner of the condition of the personal property and return the property for the owner to hold as soon as possible.
History —Aug. 31, 2000, No. 272, § 3.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 221 - Regulation of Furniture Repair Business (§§ 2431 — 2435) › § 2434 - Secretary of Consumer Affairs; faculties, duties

The Secretary of Consumer Affairs is hereby empowered to see to the compliance of the provisions of this chapter, by using all powers and faculties that have been conferred to him/her by virtue of §§ 341—341w of Title 3, known as the Consumer Affairs Department Organic Act.
History —Aug. 31, 2000, No. 272, § 4.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 221 - Regulation of Furniture Repair Business (§§ 2431 — 2435) › § 2435 - Penalties

Any violation of the provisions of this chapter shall be punishable by the imposition of an administrative fine, for up to a maximum of ten thousand dollars ($10,000) per infraction, by the Department of Consumer Affairs, pursuant to the provisions of the organic act of said Department. The amounts of money collected on account of said fines shall be covered into the funds of the Department of Consumer Affairs, in order to strengthen the available resources of the Department to protect the consumer.
History —Aug. 31, 2000, No. 272, § 5.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2451 - Definitions

For the purposes of this chapter, the following terms shall have the meaning set forth below:
(1) Lessor. — Means the person who regularly provides the use of property through lease contracts with purchase option, and who initially receives the lease payments according to the lease contract with a purchase option.
(2) Lessee. — Means a natural person who leases personal property through a lease contract with purchase option, to be used mainly for personal or family purposes or for the home.
(3) Announcement. — Includes a commercial message in any medium that directly or indirectly helps, promotes or aids a lease contract with purchase option.
(4) Lease contract with purchase option. — Means an agreement for the use of personal property by a natural person mainly for purposes of personal, family or home use, for an initial period of one year or less which may be automatically renewed with each payment after the initial period, but does not bind or require that the lessee to continue to lease or use the property after the initial period, and which allows the lessee to become the owner of the property.
(5) Perfection. — Means the moment in which the lessee becomes contractually bound in a lease contract with purchase option.
(6) Early purchase option. — Means the agreement though which the lessor grants the lessee the option of acquiring the leased property before the expiration of the contract.
(7) Cash sale price. — Means the price at which the lessor would have sold the property to the lessee on the date of the lease contract with purchase option, if the transaction had been a sale instead of a lease contract with purchase option.
(8) Secretary. — Means the Secretary of Consumer Affairs.
History —Apr. 13, 2000, No. 67, § 2, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2452 - Inapplicability of other laws; exempt transactions

(a) Other laws. — The lease contracts with purchase option of a year or less as defined by this chapter, shall not be governed by the following laws:
(1) Sections 2401 et seq. of this title, known as the “Regulation of Personal Property Lease Contracts Act”.
(2) Sections 996 et seq. of this title, known as the “Personal Property Leasing Institutions Act”.
(3) Sections 731 et seq. of this title, known as the “Retail Installment Sales and Financing Companies Act”.
(b) Chattel mortgage. — Lease contracts with a purchase option that comply with this chapter do not create a chattel mortgage as defined in subsection (37) of § 451 of Title 19, part of the law known as the “Commercial Transactions Act”, unless the lessor opts to register them in the Commercial Transactions Registry.
(c) Exempt transactions. — This chapter does not apply to the following transactions:
(1) Lease contracts with purchase option mainly for business, agricultural, or commercial purposes, or those entered into with government agencies or their instrumentalities, or with organizations;
(2) a lease of a safe;
(3) a lease of personal property permanently attached to real property;
(4) the lease of an automobile, or
(5) the lease of personal property and/or the improvements made to it.
History —Apr. 13, 2000, No. 67, § 3, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2453 - Disclosure

(a) Requirements for disclosure. — For each lease contract with purchase option, the lessor shall disclose the following information in the contract, as applicable:
(1) The total number, the total amount, and the term of all the lease payments needed to acquire the property.
(2) A statement that the lessee shall not become the owner of the property until the lessee has paid the total amount of the lease payments needed to acquire the property.
(3) A statement that the lessee is responsible for the market value of the property if it is lost, stolen, damaged, or destroyed. The market value of the property is determined at the moment in which it is lost, stolen, damaged, or destroyed.
(4) A brief description of the leased property that is sufficient for it to be identifiable by the lessor and the lessee, including an identification number, if applicable, and a statement indicating whether the property is new or used, but a statement indicating that the new property, if used, does not constitute a violation of this chapter.
(5) The total amount, in dollars, of the initial lease payment that has been made or shall be required on or before the validity of the contract or delivery of the property, whichever is last.
(6) A statement that the total amount in dollars of the lease payments needed to acquire the property, does not include other charges, such as processing charges, request charges, charges for late payment, noncompliance, charges for reinstatement, or other additional charges, which must be mentioned separately in the contract.
(7) A statement that clearly summarizes the terms of the lessee’s purchase option. Whether the lease contract with purchase option includes an early purchase option according to the formula specified in said contract.
(8) A statement identifying the party that is responsible for the maintenance or service of the property during the term of the lease, along with a description of said responsibility.
(9) A statement that the lessee shall end the contract without penalty handing over voluntarily or returning the property in good condition at the moment of expiration of any term of the lease, along with any lease payment that is unpaid at said moment.
(10) Notice of the right to reinstate a contract as provided in this chapter.
(11) Any other information that the Secretary deems necessary.
(b) The Federal Consumer Protection Act. — With regard to situations specifically contemplated by the Federal Consumer Credit Protection Act, 15 U. S. C. §§ 1601 et seq., compliance with said act, fulfills the requirements of this section.
History —Apr. 13, 2000, No. 67, § 4, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2455 - Blank spaces

All the blank spaces in the forms of the lease contract with a purchase option shall be filled out before said lease contract with a purchase option is signed. The blank spaces that have been provided for entries or terms that do not apply to the contract shall be crossed out.
History —Apr. 13, 2000, No. 67, § 6, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2456 - Advertisements

(a) Prohibition. — An advertisement for a lease contract with purchase option shall not declare nor imply that a specific item is available in specific quantities or terms unless the lessor usually and customarily offers, or will offer said item in said amounts or terms. This prohibition applies to promotions carried out in the lessor’s commercial establishment.
(b) Disclosure. — If an advertisement of a lease contract with purchase option for a specific item refers to, or specifies, the amount of any payment, or the right to own it, the advertisement shall also specify, clearly and conspicuously, the following terms, as applicable:
(1) That the transaction advertised is a lease contract with purchase option;
(2) the total in dollars of the lease payments needed to become the owner of the property, and
(3) that the lessee shall not be the owner of the property until the amount needed to become the owner has been paid in full or through prepayment, as provided by law.
(c) Disclosure of the price of the items. — Each item advertised or offered under a lease contract with a purchase option shall indicate, in a clear and conspicuous way, and in Arabic numbers, that can be read and understood through visual inspection, on each of the following labels on or near the item, or that is available on a list or in a catalog located near the item:
(1) The cash price of the item, and
(2) the amount of each lease payment, the number of lease payments needed to become the owner of the property, and the total amount in dollars needed to be the owner of the property.
(d) Inapplicability. — This section does not apply to the owner or personnel, as such, of any medium in which the advertisement appears, or through which it is disseminated.
History —Apr. 13, 2000, No. 67, § 7, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2457 - Reinstatement rights of the lessee

(a) Reinstatement. — A lessee who does not meet the lease payments on time, may reinstate the original lease contract with purchase option without losing any right or option acquired previously on the original lease contract with a purchase option, if the following requirements are met:
(1) After having failed to make one payment on time, the lessee voluntarily turned over the property to the lessor within five (5) days of the limit to make said payment, and
(2) in the case of a lessee who has paid less than sixty percent (60%) of the total in dollars, of the payments needed to become the owner of the property, no more than sixty (60) days have passed since the lessee returned the property. If the lessee has paid more than sixty percent (60%) of the total payments needed to become the owner of the property, the rights of the lessee to be reinstated shall be extended for a period not less than one hundred and eighty (180) days after the lessee has returned the property.
(b) Charges. — As a condition for the reinstatement of the lease contract with purchase option, the lessor may collect the indebted balance of accrued payments and late charges, a reinstatement charge that shall not exceed five dollars ($5.00), and an amount for shipping charges, if reshipment of the item is necessary.
(c) Substitute Items. — If reinstatement occurs according to this section, the lessor shall provide the lessee the same item leased by the lessee before the reinstatement, if it is available. If the same item is not available, a substitute item of comparable value, quality, and condition may be provided. If a substitute item is provided, the lessor shall provide all the information required in § 2453 of this title to the lessee.
History —Apr. 13, 2000, No. 67, § 8, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2458 - Prohibited provisions

A lease contract with a purchase option shall not include a provision:
(1) Requiring a judgment by consent.
(2) Authorizing a lessor or an agent of the lessor to commit a breach of the peace when repossessing the leased property.
(3) Waiving a defense, counterclaim, or right that the lessee could have against the lessor or an agent of the lessor, or any assignee of the lessor.
(4) Requiring payment of late charges unless the lease payment is in arrears for more than three (3) working days, and the charges shall not be for an amount greater than ten percent (10%) of the lease payment in arrears, or three dollars ($3.00), whichever is less.
(5) Requiring a separate payment in addition to the lease payments needed to become the owner of the property, without including those related to the exercise of an early purchase option, as provided in § 2459 of this title.
(6) Requiring a waiver of any action against the lessor or the holder of the lease contract with a purchase option, or other person acting as such, for an illegal act committed when collecting the payment under the lease contract with a purchase option, or upon the repossession of items.
History —Apr. 13, 2000, No. 67, § 9, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2459 - Early purchase option

If a lease contract with a purchase option provides an early purchase option, the lessor shall divulge the formula used to calculate the early purchase option sale price.
History —Apr. 13, 2000, No. 67, § 10, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2460 - Exempt transaction

This chapter does not apply to lease agreements in which the person who leases the property has no legal right to become its owner.
History —Apr. 13, 2000, No. 67, § 11, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2461 - Prohibited provisions; nullity

Any provision prohibited by this chapter in a lease contract with a purchase option shall be null, but said nullity shall not affect the effectiveness of the lease contract with a purchase option.
History —Apr. 13, 2000, No. 67, § 12, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2462 - Receipts, acknowledgement of total payment

(a) Receipts. — The lessor shall give or remit to the lessee a receipt for any cash payment. The lessor shall also furnish him/her, upon request by the lessee, a list of all the charges, payments, and their dates related to the lease contract with a purchase option. The lessor may charge the lessee a fee of five dollars ($5.00) for the second, and each additional statement of account issued by request of the lessee in a period of twelve (12) months.
(b) Title documents. — After all the lease payments needed to acquire the property have been made by the lessee, or the lessee has exercised an early purchase option pursuant to § 2451 of this title, upon the request of the lessee, the lessor shall give, or remit by mail to the lessee at his/her last known address, the instrument or instruments needed to recognize that the lessee is the owner of said property, which the lessee acquired pursuant to the lease contract with a purchase option.
History —Apr. 13, 2000, No. 67, § 13, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2463 - Granting of reasonable attorney’s fees and costs

A lease contract with a purchase option may provide for the payment of reasonable attorney’s fees in cases of contempt, and costs, if referred to an attorney for collection. Reasonable attorney’s fees and other expenses shall be granted to the prevailing party in any action related to a lease contract with a purchase option, pursuant to the provisions of this chapter, regardless of whether said action is brought by the lessor or by the lessee. When a defendant-lessee alleges in his answer that he paid the total amount to which the plaintiff was entitled, or turned over possession of the leased chattel, and this allegation is true, the defendant shall be the prevailing party according to the meaning of this section.
History —Apr. 13, 2000, No. 67, § 14, eff. 30 days after Apr. 13, 2000.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 222 - Rent-to-Own Contracts Act (§§ 2451 — 2466) › § 2464 - Waiver prohibited; exclusion

(a) Waiver. — Any waiver of this chapter by the lessee shall be contrary to public policy, shall have no effect, and shall be null.
(b) Exclusion. — If any of the provisions of this chapter or its application to any person or circumstance were found to be unconstitutional, the rest of the chapter and the application of said provision to other persons or circumstances, shall not be affected.
History —Apr. 13, 2000, No. 67, § 15, eff. 30 days after Apr. 13, 2000.