TO RENT THE ABOVE MERCHANDISE:
Renter (including all "co-renters") agrees to make an Initial Rental Payment in the amount listed in Box 1 which pays for the use of the use of the Merchandise until expiration of the Initial Rental Period listed in Box 2 and shall continue to make Monthly Rental Payments as listed in Box 3 on or before the date due beginning with the expiration of the Initial Rental Period.
MINIMUM RENTAL PERIOD: The Renter is required to make the Minimum Number of Rental Payments in Box 4 for the total amount shown in Box 5 which includes the Initial Rental Payment. If the Renter returns the merchandise before the expiration of the Minimum Rental Period, the Renter must still pay the Minimum Number of Rental Payments.
OPTIONS AFTER EXPIRATION OF MINIMUM RENTAL PAYMENT PERIOD:
OPTION 1: Cancel this Agreement by returning the Merchandise to a Summerhays Music location listed above in accordance with the terms in the paragraph below entitled 'Termination by the Renter." Schools, Music teachers and other third parties shall not be responsible for the return of the Merchandise. Failure to return the merchandise automatically initiates the monthly rental option. (see Option #2).
OPTION 2: Continue Monthly Rental Payments, each of which entitles the Renter to the use of the Merchandise for one month and renews automatically until the return of the Merchandise. Monthly Rental Payments are due on or before the date in Box 6.
TERMINATION BY THE RENTER: Renter may terminate this Agreement at any time after paying the rent due for the Minimum Rental Payment Period by returning the Merchandise in the same condition as at the time of rental, fair wear and tear excepted, to the Summerhays Music location listed above, and by payment of all additional (beyond the Minimum Rental Payments) Monthly Rental Payments and other charges due through the date of return. Minimum Rental Payments are due at the time of return. Rent due beyond the Minimum Rental Payments will accumulate until the Merchandise is received at Summerhays Music. Schools, Music teachers and other third parties shall not be responsible for the return of the Merchandise. Unpaid balances accrue interest at 18% APR.
TERMINATION BY THE OWNER: The Owner (Summerhays Music) can terminate this Agreement at its option and without notice to the Renter should the Renter fail to make any rental payment on the date due, or should the Renter breach any agreement, condition or representation of this Agreement and/or if the Owner deems itself insecure as to the safety, condition or location of the Merchandise. Upon termination, Renter agrees to deliver the Merchandise to Owner in the same condition as when rented, fair wear and tear excepted, and Renter shall remain liable for all payments and charges due at the time the Merchandise is returned and for the full performance of this Agreement.
REINSTATEMENT: If you fail to make a timely rental payment under this Agreement, you may reinstate this Agreement without losing any rights or options, by paying within five days of the renewal date: (1) all missed rental payments; (2) reasonable costs of pickup and re-delivery; (3) applicable late fees; and (4) reinstatement costs of $25.00. If you return the Merchandise to us within the five-day reinstate¬ ment period, and if you have paid less than 2/3 of the total purchase price, you may reinstate this Agreement within 45 days of the return of the merchandise by paying the payments, costs and fees listed above. If you return the Merchandise to us within the five-day reinstatement period, and if you have paid more than 2/3 of the total purchase price, you may reinstate this Agreement within 90 days of the return of the Merchandise by paying the payments, costs and fees listed above. Upon reinstatement, we will provide you with the Merchandise if available, or substitute merchandise of comparable quality and condition. Your right to reinstatement does not prevent us from attempting to repossess the Merchandise during the reinstatement period, but such a repossession does not affect your right to reinstate.
TO BUY THE ABOVE MERCHANDISE:
OPTION 1: Pay the cash price plus sales tax less any payments made, on or before the expiration of the Initial Rental Period.
OPTION 2: Make the number of payments listed in Box 7 beginning with the expiration of the Initial Rental Period. The Total Sales Price listed in Box 8 is the Cash Price plus sales tax and interest at the annual percentage rate in Box 9. In addition late fees, charges for pickup, collection or reinstatement must be paid. If your payments are late, you will pay more interest resulting in a greater number of payments; if your payments are eariy, you will pay less interest, resulting in a fewer number of payments.
SALES TAX: Should State or Local governments change the sales tax rate, your monthly payment and total sales price will change in accordance.
TOTAL SALES PRICE: The Total Sales Price listed in box 8 does not include late fees or other charges.
ESTIMATE: Payments made earlier than the scheduled due date will reduce, and payments made later will increase, the actual number of payments necessary to buy the Merchandise. These adjustments will be made at the end of the payment schedule to reduce or increase your total number of payments. There is no penalty for early payoff. The balance will be calculated using simple interest calculations. The parties acknowledge that if there is a clerical error in disclosing the payment schedule, the number and sum of payments may be adjusted to reflect the correct Cash Price, tax and interest.
TITLE: You will not own the Merchandise until all payments and other charges such as late fees, charges for pickup, collection or reinstatement listed in Option 2 are paid in full.
LOST OR STOLEN: If the Merchandise is lost, stolen or destroyed, you are liable to Owner for the fair market value of the Merchandise as of the time it is lost, stolen or destroyed, plus all rent, taxes and other fees due until paid. SERVICE: While the Merchandise is in your possession you are responsible for sen/icing it and for maintaining it in good condition.
WARRANTY: You acquire at the time of purchase any warranty rights which exist on the Merchandise, if the transfer is allowed by the terms of the warranty.
LOCATION OF THE MERCHANDISE: Renter warrants and agrees to maintain as the primary location of the Merchandise the Renter's address listed below and will not change the primary location from the Renter's address without written permission by the Owner. Renter understands that PERMISSION WILL NOT BE GIVEN TO REMOVE THE MERCHANDISE FROM THE STATE WHERE RENTED. If the Merchandise is removed from the state where rented, Renter is in default, and is liable to Owner for the total value of the Merchandise, as shown under "Cash Price" plus all outstanding rent and charges due under this agreement.
LATE PAYMENT CHARGE: Any rental payment received more than 10 days after the due date is subject to a late charge of $10.00 or 5% of the rental payment, whichever is greater.
APPROVAL AND ACCEPTANCE: Acceptance of this Agreement is subject to credit verification and final approval by a corporate officer at the Owner's corporate headquarters as listed above.
DEFAULT: If the renter should default In the terms of this agreement the entire value of the merchandise defined as the contract cash price, plus all outstanding rent and charges shall immediately become due and payable and will bear interest at the rate of 18% APR. If your account is placed with a collection agency for collection you agree to pay a collection fee of 50% of the balance then due on your account.
NOTICE TO THE CONSUMER
Do not sign this agreement before you read it or if it contains blank spaces. You are entitled to a copy of the agreement you sign. By completing this credit application, you certify under penalty of perjury that the statements made above are true to the best of your knowledge. Any false statements made are grounds for immediate repossession of the instrument described above. You authorize us to verify your employment and credit standing as deemed necessary. We report payment records to credit bureaus.
By signing below, the Renter agrees to all of the terms listed on the front and back of this agreement and acknowledges receipt of a completed copy. This contract is subject to final approval by corporate officers.
Title and unrestricted right of repossession of the merchandise shall remain with Summerhays Music. Renter may not assign the contract or any interest without prior written authorization from Summerhays Music.
Renter shall be responsible for all damages to the merchandise other than reasonable wear and tear. Marks & scratches caused by the use of guitar picks are not reasonable wear and tear. Removal of any stickers placed on merchandise, including the case, will be charged at minimum repair shop hourly rates.
Warranties shall be limited on all merchandise to those express warranties, if any, which are provided by the manufacturer. Warranty work must be done at the Summerhays Music Repair Shop located at 5420 S. Green Street, Murray, Utah or 1006 S. State St., Orem, Utah. Shipping costs to and from Summerhays Music are the responsibility of the renter.
If the renter should default in any of the obligations hereunder, or if the owner should deem itself insecure with respect to the contractual obligations hereunder, the entire cash price, as listed on the front of the contract, of the merchandise, plus all outstanding rent and charges, at the option of the owner, and without notice to the renter, shall immediately become due and payable, and without process of law and shall bear interest at 18% APR. Such termination shall not release renter from the payment of any damages sustained by owner as provided herein. The remedy of repossession shall be cumulative with any other remedies the owner may have against the renter as a matter of law. Renter hereby directs any third part having custody or possession of the merchandise, including schools, to deliver the merchandise to the owner on demand and agrees to hold owner and the said third parties, school officials and teachers harmless for such delivery. In the event the merchandise is is repossessed by the owner, renter shall, in addition to cost of the collection and instrument damage, pay all amounts due under the contract from the date thereof until recovery of the merchandise by the owner. Renter has no right to sell, mortgage, pawn, pledge, encumber, or dispose of said property. To do so is a breach of this agreement and renter shall be liable under applicable state law. If the merchandise is removed from the state where rented, renter is liable to owner for the total value of the merchandise as listed on the front of this contract plus all outstanding rent charges. Should renter fail to make timely payments, renter authorizes Summerhays Music to charge all past due rent or other charges to renters debit or credit card on file.
USE OF AUTOMATED TELEPHONE DIALING EQUIPMENT EMAILS AND TEXT MESSAGES. By signing this Agreement you hereby agree that for servicing your account and/or collecting amounts you may owe, we, our agents and subsequent assignees of your Lease, may contact you using automated telephone dialing equipment or an artificial/pre-recorded voice or text messaage at any telephone number you provide to us, including any cell phone number, or at any number we obtain from another source. In addition, you agree that we may monitor and record telephone calls regarding your account. You agree that we may contact you at any email address you supply to us during the servicing and collections of this Agreement. Additionally, we may also send you text messages at any phone or email address you provide. $50 skip trace fee will apply if the renter moves without notifying Summerhays Music, or did not get written permission to move outside of the state of Utah.
LEGAL REMEDIES AND COLLECTION COSTS
Renter agrees to pay all costs and expenses incurred in collection including, but not limited to, attorney's fees, collection agency fees up to 50% of the amount due, $35.00 per hour for employee time, expenses, service and filing fees, court costs, interest at the rate of 18% on all rental payments due on the date of return and any other reasonable expenses incurred. In any event, minimum charge for the pick-up of a payment or instrument outside the store shall be $35.00 plus fifty cents ($0.50) per mile, per attempt, and $35.00 per hour for employee time spent in small claims court to collect money owed under this agreement. If your account is referred to an attorney or an outside collecting agency for collection, you agree to pay all fees charged by the attorney or collecting agency, up to 50%, with or without suit, along with any other fees including but not limited to court costs, attorneys fees and/or costs of repossession. If your account is placed with a collection agency for collection, you agree to pay a collection fee of 50% of the balance then due on your account.
Performance of this contract is hereby deemed to take place at the corporate offices of Summerhays Music located at 5420 Green Street, Murray, Utah 84123. That performance is to be reflected by acceptance of the contract by corporate officers of Summerhays Music and receipt of all rental payments. Suit to enforce the provisions of this agreement may be brought in any court of competent jurisdiction located in Salt Lake County or Utah County, Utah; Uintah County, Wyoming; or Franklin County, Idaho. Any judgement rendered hereon shall bear interest at the annual percentage rate of 18%. This contract shall be construed according to the laws of the state of Utah. Seller reports paying records to credit bureaus and other credit lenders.
USE OF COLLATERAL
Renter represents and warrants that the merchandise rented hereunder is rented for personal, family and household use, and not for professional use.
ORAL STATEMENTS & PERFORMANCE
There are no understandings, agreements, or representations, express or implied, written or oral, not specified in this contract in the terms hereof, and this contract contains the entire agreement of the parties and is binding on both parties. If owner waives any default by renter or owner remedies any of renter's defaults, such action will not operate as a waiver of the default remedied or of any earlier or later defaults. Time is of the essence in this agreement. Coupons or monthly statements are not provided to the customer by the owner and said coupons or statements in no way alter the terms of the contract.
DISPUTES AND RETURNED CHECKS
There will be a $20.00 service charge on all returned checks. Disputed balances must be discussed directly with the Owner or Owner's Credit Manager. Renter agrees and understands that any endorsement on a check containing the phrase "payment in full" or similar language is not binding on Owner, without an express written agreement signed by the Owner or Owner's Credit Manager.
APPLICATION OF PAYMENTS
Payments will be applied first to returned check charges, late fees and any other charges due and then to sales tax and rental payments. Payments are applied to past due payments first, then current payments. In determining payoff balances, interest is calculated on a 360 day year.
UTAH CODE ANN. - Theft of Rental Property
"76-6-410, Theft by person having custody of property pursuant to repair or rental agreement. - A person is guilty of theft if...
"(2) Having custody of any property pursuant to a rental or lease agreement where it is to be returned in a specified manner or at the specified time, intentionally fails to comply with the terms of the agreement concerning return so as to render such failure a gross deviation from the agreement."
For the purposes of the contract, "gross deviation from the agreement" means failure to return the property to the owner within 10 days of the date the last payment was due or within 10 days of termination by owner.
NO PRORATION OF RENT FOR PARTIAL MONTHS
Rent is charged on a month-to-month basis on the first day of each month. Renter may return the instrument at any time during the month. However, Owner does not prorate or refund rent for unused days.
The following provisions apply to all instruments. Trade options must be exercised at the time the Renter returns the rental instrument. Renter may not combine accumulated equity from more than one instrument to purchase a single instrument. Owner is not obligated to provide Renter with any instrument other than the brands and types that it normally carries in-stock. Owner has the right to reduce the amount of trade credit to compensate for repairs or replacement parts if Owner deems it necessary to return the trade-in instrument to a usable condition similar to that in which it was originally rented. Renter's account must be up-to-date at the time of the trade-in.
Band Instruments: Customer may choose one of two options: 1)100% of the equity or principal accumulated toward the purchase of a student level instrument may be applied toward the purchase of select new or better band instruments at the current retail price of the desired instrument. Or 2) up to 12 months of the principle or equity accumulated toward the purchase of a student level instrument may be applied toward the purchase of select intermediate or professional instruments at the Summerhays Music everyday low price. (Excludes Drums)
String Instruments: Owner will apply one-half of all rental payments made (less sales tax) in a continuous rental program of string instruments that are smaller than full-sized for a single student toward the Owner's everyday low price of a full-sized instrument that is of greater value and of the same instrument type (i.e. violin for violin, viola for viola, etc.). (Excludes Guitars and Harps)
MAINTENANCE AND THEFT PROTECTION AGREEMENT
This maintenance and Theft Protection Agreement, hereafter referred to as MTP, will provide extended maintenance and theft protection for your instrument subject to certain terms and conditions described below.
Intentional damage is not covered.
THEFT PROTECTION: Summerhays Music will replace your instrument if stolen provided that the theft is reported to the local police within 24 hours of the theft. You must provide Summerhays Music with a copy of the police report showing the instrument serial number. The instrument will be replaced with one of similar quality and age, provided that all payments due on your account are current, and you pay the required deductions as listed under "COST'. You must then complete your remaining contractual obligation.
ACCIDENTAL DAMAGE: We will repair instruments accidentally damaged provided that your MTP payments are current. (See cost below.) Exclusions include damage caused by horseplay, overt neglect, intentional damage or damage occurring on any aircraft or water vessel. Damage caused by an automobile accident or home disaster must go through the home/auto insurance provider.
*Selected accessory items are available to MTP holders at a 50% discount off retail. Damaged accessory items must be replaced by like items of similar price and quality. Available items include: Accent brass mouthpieces, Ernie Northway woodwind mouthpieces, select strings, Rico or Summerhays reeds, and Yamaha mallets and Zildjian snare sticks. Other in stock brand names of mouthpieces, reeds, strings and mallets are available to MTP holders at 25% off retail.
CONDITIONS: Regular payments must be maintained as scheduled during the time elapsing between loss and replacement or while the instrument is being serviced. Where theft or damage is covered by your home owner’s or car insurance you must bill them first, and the MTP will cover the unpaid balance. All provisions are void and payments forfeited if the instrument is serviced or repaired by anyone other than a Summerhays Music Authorized Repair Technician. At the discretion of Summerhays Music, if repair exceeds the value of the instrument, Summerhays Music will replace it with one of similar age and value. This agreement expires with termination of your rental agreement. If you would like to cancel before then, you must send a notice of termination, in writing, to Summerhays Music, 1006 S. State St. Orem Utah 84097. MTP fees will be added to your monthly rent and are due at the same time. MTP is available on an annual basis once you have purchased your instrument. We reserve the right to decline selling or renewing MTP coverage.
LATE PAYMENTS: If any MTP payment is more than 30 days late, your Maintenance and Theft Protection will be deemed to have lapsed. You will not be entitled to any repair, replacement or maintenance benefits for theft or damage occurring during the time your MTP payments) were late.
COST: Instruments with a value of $899 or less pay a rate of $5.00 plus tax per month. Instruments valued at $900 to $1799 will pay a rate of $8.00 plus tax per month. Instruments valued at $1800 to $2500 will pay a rate of $12.00 plus tax per month. Cellos: You are responsible to pay the first $200 of covered replacement charges, and the first $50 of repairs over $250. For all other instruments you are responsible to pay the first $50.00 of covered replacement costs, and $50 of repairs over $250.
Instrument must be inspected by an authorized Summertiays Music employee before MTP can take effect. This agreement replaces any prior maintenance & theft protection agreement made on this account.