47-18-603 - Definitions. - Tennessee Statutes

47-18-603. Definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Advertisement” means a commercial message in any medium that aids, promotes, or assists directly or indirectly a rental-purchase agreement;

     (2)  “Cash price” means the price at which the lessor would have sold the property to the consumer for cash on the date of the rental-purchase agreement;

     (3)  “Consumer” means a natural person who rents personal property under a rental-purchase agreement;

     (4)  “Consummation” means the time a consumer becomes contractually obligated on a rental-purchase agreement;

     (5)  “Division” means the division of consumer affairs in the department of commerce and insurance;

     (6)  “Lessor” means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement; and

     (7)  “Rental-purchase agreement” means an agreement for the use of personal property by a natural person primarily for personal, family, or household purposes, for an initial period of four (4) months or less (whether or not there is any obligation beyond the initial period) that is automatically renewable with each payment and that permits the consumer to become the owner of the property. “Rental-purchase agreement” shall not be construed to be, nor be governed by, any of the following:

          (A)  A lease or agreement which constitutes a “credit” sale as defined in 12 C.F.R. 226.2(a)(16) and Section 1602(g) of the Truth In Lending Act, 15 U.S.C. § 1601 et seq.;

          (B)  A lease which constitutes a “consumer lease” as defined in 12 C.F.R. 213.2(a)(6);

          (C)  Any lease for agricultural, business, or commercial purposes;

          (D)  Any lease made to an organization;

          (E)  A lease or agreement which constitutes a “retail installment contract” or “retail installment transaction” as defined in § 47-11-102;

          (F)  A “security interest” as defined in § 47-1-201; or

          (G)  A “home solicitation sale” as defined in § 47-18-702.

[Acts 1987, ch. 225, § 4.]