RENTAL PURCHASE AGREEMENT

 
Definition of terms: As used in this agreement, “you and “your” mean the person or persons signing this agreement as lessee. “We” and “Our” mean the
Lessor/Owner (Ray’s Midbell Music). “Lease” means this Rental Purchase Agreement including all disclosures.

1. Additional Charges: Late Payment Charges: A $10 charge for monthly payments not made within thirty (30) business days of the payment due date.

2. Your Reinstatement Right: If you fail to make a renewal payment you may have the right to reinstate this agreement by paying all payments which are past due, all applicable late charges, reinstatement fees, and redelivery fees provided, (1) you voluntarily returned the property to us, if requested and (2) not more than 60 (sixty) days have passed since you have returned the property.

3. Your Termination Right: You may terminate this agreement at any time without paying any charges other than those previously due. The property must be returned in its present condition, reasonable wear and tear accepted.

4. Our Termination Right: We may terminate this agreement for a default in payment or breach of any other material term of this agreement. If termination occurs, we shall be entitled to all rental payments and other charges due up to the date of termination as well as the reasonable expenses of repossession of the property if you fail to surrender the property to us

5. Risk of loss (damages, disappearances, theft, or destruction of property): Damage to or loss of instrument (and/or equipment) from any casualty whatsoever shall be born by Lessee from date of rental purchase agreement forward. You are responsible for its safety until it is returned to us. If the property is damaged or partly destroyed, you agree to pay us immediately for all repairs (provisions of M&R Plus accepted, see below.) If the property disappears, is stolen or destroyed, you agree to pay us immediately the amount of the fair market value of the property as of the date of the disappearance, theft, or destruction.

6. Optional (Maintenance & Repair Plus Replacement!): Coverage is purchased monthly or yearly at time instrument is purchased, rented, or is purchased concurrently with each rental or lease payment in amount shown on front of agreement. Payments for this coverage do NOT apply to purchase. Rental or lease account must be in CURRENT status, or these provisions are VOID.
A. If instrument becomes damaged or deteriorates in performance, the company will repair and/or regulate it to proper playing condition without charge. In event of damage to mouthpiece, strings, drumhead(s), sticks, bows and cases, repair will be made when possible, or replacement allowance will be given equivalent to the price of entry-level part Annual limit: 6 individual guitar strings (or 1 set); 1 mouthpiece; 1 bow; 4 violin, viola, cello, or bass strings (or 1 set). NO CHARGE for installation. Specifically EXCLUDED: cosmetic damages which do not affect the performance of the product. (Note: Minor cosmetic damages may be corrected, if possible). OTHER EXCLUSIONS: Trap sets and cymbals; keyboards and digital pianos; amplifiers and PA systems; reeds; oils &
care items; accessories. FRETTED EXCLUSIONS: Fretted finish or wood cracks, body damage from humidity issues. Damage beyond reasonable repair (i.e.,broken headstock, body damage, etc.) A FREE LOANER will be provided upon request (subject to availability, EXCLUDES FRETTED INSTRUMENTS). Coverage has NO DEDUCTIBLE costs!
B. Routine cleaning is not covered for any instrument. If full chemical flush is necessary for a brass instrument to be brought to proper playing condition, one chemical flush can be allowed per year (based on original contract date). This service can also cover minor accessible dents.
C. Any claim for repair hereunder shall not alter or diminish the terms of the rental-purchase or lease agreement. If Lessee defaults by more than 10 (ten)
days in payment thereof, M&R plan will lapse as of such default and may be reinstated only by permission of the Company. All repairs for which claims are made must be made by Ray’s Midbell Music or our authorized agents.
D. These provisions are void in event of obvious neglect, carelessness, and/or intentional abuse.
E. Replacement (EXCLUDES FRETTED INSTRUMENTS): In event of total loss of instrument (from fire, theft, casualty, or damage beyond reasonable repair), a claim needs to be filed by Lessee with Lessee’s homeowners’ or renters’ insurance plan and RMBM must be notified within 48 hours. If rental/lease and M&R account is in “current” status, RMBM will cover replacement costs which are NOT covered by Lessee’s homeowner’s or renters’ insurance plan deductible. Replacement will be an instrument of estimated comparable value and condition AT THE TIME OF LOSS (not the condition on the original contract date.) In the event of THEFT or MYSTERIOUS DISAPPEARANCE, a police report MUST be filed within 48 HOURS of loss or replacement is VOID and client is 100% responsible for replacement. If original instrument is later recovered, it is to be returned to Ray’s Midbell Music within 48 hours of recovery. Limit ONE TIME replacement for the original serial number for the life of the contract. Any outstanding balance due on the original instrument rentalpurchase or lease account will be due and payable under terms of original Rental-Purchase or Lease Agreement.
7. Refundable Security Deposit: If Lessee chooses to send the monthly payment by mail instead of opting for direct debit, the Initial Transaction is to include a refundable security deposit equal to 2 months rent, M&R, & tax. All monthly payments must be received by stated due date. Applicable late charges and fees will be incurred for payments not received by due date. We retain our right to terminate this agreement and repossess instrument for default of payment. Upon return of instrument (provided account is in good standing), security deposit will be refunded by check, by mail within 30 days of return. Upon request, security deposit may be used toward the final two (2) payments of rental-purchase agreement. Upon pay-off, security deposit may be
used toward any merchandise or service at RMBM, or will be refunded by check, by mail within 30 days of pay-off. Select instrument models may require a one-month refundable security deposit along with a credit card on file.

8. Location of Property: You agree to notify us of any change in address or school attendance of user of instrument.
9. Early Buy-Out Option: If you wish to acquire ownership by purchasing the property after paying the initial rent payment, the purchase price will be the cash price less 100% (one hundred percent) of all rent payments you have made up to that time. Note: M&R Plus fees do NOT apply toward purchase of property.

10. Instrument Transfers: When transferring from one instrument to another, we allow 100% of UP TO twelve (12) regular monthly rent payments toward a different instrument of EQUAL OR GREATER value. If transferring to an instrument of LESSER value (i.e., saxophone to trumpet), we will allow a PERCENTAGE of UP TO twelve (12) monthly rent payments proportional to the price that the replacement instrument is to the original. M&R Plus Fees do NOT apply toward the instrument transfer. Transfers are only allowed for the SAME STUDENT and will generally apply towards a band or orchestra instrument (exceptions will be made at the discretion of the company.)

11. Non-payment: Non-payment of rental shall be considered default and will result in termination of agreement. The instrument shall be returned immediately to Ray's Midbell Music upon default of this agreement. Pursuant to Iowa Code Section 714.1(2), if lessee fails to return the instrument within 72 hours after the time specified, the law allows the conclusion the lessee intended to misappropriate the instrument. RMBM will seek prosecution under the criminal code for theft upon the misappropriation of any property of RMBM. In event of default, Lessee does authorize RMBM the right to REPOSSESS instrument (wherever located.) Lessee agrees to pay for any expense (including reasonable attorney’s fees) incurred by Lessor in maintaining or
defending any action or proceeding instituted by default of Lessee. A $30. fee is due and payable in event of repossession.

12. Privacy Policy: We will NOT sell, rent, distribute, or otherwise share your personal information, including e-mail address, to or with anyone. You can easily remove yourself from our email newsletter mailing list at any time by clicking the appropriate link in every marketing email we send. For more information, please read our entire privacy policy at www.midbellmusic.com

13. All contact information provided to us, including mobile phone, email, employer and nearest relative, can be used by the company or any other approved agent in the case of default.