504 - Early purchase option. - New York Statutes

* § 504. Early purchase option. At any time, after the initial payment, the consumer may acquire ownership of the property by tendering an amount equal to the cash price of the merchandise minus fifty percent of all previous rental-purchase payments made. * NB Effective until January 26, 2011 * § 504. Early purchase option. 1. The consumer has the right to acquire ownership of the merchandise at any time by tendering to the merchant all past due payments and fees and an amount equal to the cash price stated in the rental-purchase agreement multiplied by a fraction that has as its numerator the number of periodic payments remaining under the agreement and that has as its denominator the total number of periodic payments. A consumer must affirmatively elect to exercise an early purchase option. In no event shall the consumer's early purchase option be less than the amount of one periodic payment. 2. In a clear and conspicuous manner on the consumer's receipt for every periodic payment, the merchant shall, in connection with a consumer's rights under this section, provide the consumer with a written statement of: (a) the total amount the consumer would have to pay to acquire ownership of the rental merchandise if the consumer makes all regularly scheduled payments remaining under the rental-purchase agreement; and (b) the total amount the consumer would have to pay to acquire ownership of that merchandise pursuant to subdivision one of this section. * NB Effective January 26, 2011