S T A T E O F N E W Y O R K
________________________________________________________________________
6177--A
2017-2018 Regular Sessions
I N S E N A T E
May 11, 2017
___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
committee discharged and said bill committed to the Committee on Hous-
ing, Construction and Community Development -- reported favorably from
said committee and committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the real property law, in relation to lease to own
contracts in manufactured home communities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 233 of the real property law is amended by adding a
new subdivision y to read as follows:
Y. LEASE TO OWN CONTRACTS. 1. DEFINITIONS. FOR PURPOSES OF THIS SUBDI-
VISION:
(A) "COMMERCIAL COMMUNICATION" SHALL MEAN ANY WRITTEN OR ORAL STATE-
MENT, ILLUSTRATION OR DEPICTION, WHETHER IN ENGLISH OR ANY OTHER
LANGUAGE, THAT IS DESIGNED TO EFFECT A SALE OR CREATE INTEREST IN
PURCHASING GOODS OR SERVICES, WHETHER IT APPEARS ON OR IN A LABEL, PACK-
AGE, PACKAGE INSERT, RADIO, TELEVISION, CABLE TELEVISION, BROCHURE,
NEWSPAPER, MAGAZINE, PAMPHLET, LEAFLET, CIRCULAR, MAILER, BOOK INSERT,
FREE STANDING INSERT, LETTER, CATALOGUE, POSTER, CHART, BILLBOARD,
PUBLIC TRANSIT CARD, POINT OF PURCHASE DISPLAY, FILM, SLIDE, AUDIO
PROGRAM TRANSMITTED OVER A TELEPHONE SYSTEM, TELEMARKETING SCRIPT,
ON-HOLD SCRIPT, UPSELL SCRIPT, TRAINING MATERIALS PROVIDED TO TELEMAR-
KETING FIRMS, PROGRAM-LENGTH COMMERCIAL ("INFOMERCIAL"), THE INTERNET,
CELLULAR NETWORK, OR ANY OTHER MEDIUM. PROMOTIONAL MATERIALS AND ITEMS,
AND WEB PAGES SHALL BE INCLUDED IN THE TERM COMMERCIAL COMMUNICATION.
(B) "LEASE TO OWN CONTRACT" SHALL MEAN AN AGREEMENT WHERE A MANUFAC-
TURED HOME PARK OWNER OR OPERATOR, OR A LESSOR, WHICH MAY BE (I) ANOTHER
ENTITY CERTIFIED AS A MANUFACTURED HOME RETAILER PURSUANT TO ARTICLE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11654-03-7
S. 6177--A 2
TWENTY-ONE-B OF THE EXECUTIVE LAW, OR (II) A LANDOWNER, ENTERS INTO AN
AGREEMENT WITH A MANUFACTURED HOME TENANT WHEREBY THE MANUFACTURED HOME
TENANT LEASES A HOME LOCATED IN A MANUFACTURED HOME PARK AND, WHETHER IN
THE LEASE TO OWN AGREEMENT OR IN A SEPARATE AGREEMENT, LEASES THE LOT
UPON WHICH THE HOME IS LOCATED, AND THE MANUFACTURED HOME TENANT
RECEIVES AN OPTION TO PURCHASE THE MANUFACTURED OR MOBILE HOME UPON
PAYMENT OF SPECIFIED PAYMENTS OVER A SPECIFIED PERIOD OF TIME, AND UPON
THE EXPIRATION OF THE TIME PERIOD, AND PAYMENT OF THE SPECIFIED
PAYMENTS, THE MANUFACTURED HOME TENANT OBTAINS TITLE AND OWNERSHIP OF
THE HOME.
(C) "LEASE TO OWN PAYMENTS" SHALL MEAN THE PERIODIC AMOUNTS REQUIRED
TO BE PAID OVER THE DURATION OF THE LEASE TO OWN CONTRACT, OVER AND
ABOVE ANY PAYMENTS REQUIRED FOR RENTAL OF THE LOT UPON WHICH THE MANU-
FACTURED HOME IS LOCATED. LEASE TO OWN PAYMENTS SHALL ALSO INCLUDE THE
AMOUNT REQUIRED TO BE PAID AT THE END OF THE TERM.
(D) "LESSEE" SHALL MEAN A MANUFACTURED HOME COMMUNITY OWNER OR ANY
OTHER PERSON, CORPORATION, ASSOCIATION, OR OTHER LEGAL ENTITY WHO LEASES
A MANUFACTURED OR MOBILE HOME SUBJECT TO A LEASE TO OWN CONTRACT.
(E) "LESSOR" SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR ANY
OTHER LEGAL ENTITY WHO LEASES A MANUFACTURED OR MOBILE HOME SUBJECT TO A
LEASE TO OWN CONTRACT.
(F) "TERMS" MEANS ANY OF THE FEES, COSTS, OBLIGATIONS, OR CHARACTER-
ISTICS OF OR ASSOCIATED WITH THE LEASE TO OWN OPTION.
2. REQUIREMENTS FOR LEASE TO OWN CONTRACTS:
(A) ON AND AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, NO MANUFAC-
TURED HOME PARK OWNER OR OPERATOR, OR LESSOR, SHALL ENTER INTO A LEASE
TO OWN CONTRACT EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDI-
VISION;
(B) ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, NO MANUFAC-
TURED HOME PARK OWNER OR OPERATOR OR LESSOR SHALL OFFER A LEASE TO OWN
CONTRACT UNLESS THE MANUFACTURED HOME PARK OWNER OR OPERATOR, OR LESSOR,
HAS COMPLIED WITH THE PROVISIONS OF THIS SUBPARAGRAPH TO ESTABLISH THE
OWNERSHIP OF THE HOME THAT IS TO BE TRANSFERRED PURSUANT TO THE LEASE TO
OWN CONTRACT:
(1) AT LEAST FIVE BUSINESS DAYS PRIOR TO THE EXECUTION OF THE LEASE TO
OWN CONTRACT, THE MANUFACTURED HOME PARK OWNER OR OPERATOR, OR LESSOR
SHALL, AT HIS OR HER EXPENSE:
(A) PERFORM A CERTIFIED SEARCH THROUGH THE UNIFORM COMMERCIAL
CODE/LIEN SEARCH FROM THE DEPARTMENT OF STATE;
(B) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE MANUFACTURED OR MOBILE HOME IS LOCATED;
(C) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE LESSOR RESIDES, IF DIFFERENT FROM THE COUNTY WHERE THE MANUFACTURED
OR MOBILE HOME IS LOCATED;
(D) IF THE MOBILE HOME IS A NINETEEN HUNDRED NINETY-FIVE MODEL YEAR OR
NEWER MANUFACTURED HOME, PERFORM A RECORDS SEARCH FROM THE DEPARTMENT OF
MOTOR VEHICLES; AND
(E) (I) RECEIVE COPIES OF THE RESULTS OF THE SEARCHES REQUIRED UNDER
ITEMS (A), (B), (C) OR (D) OF THIS CLAUSE; AND
(II) PROVIDE A COPY TO THE LESSEE, EITHER BY CERTIFIED MAIL OR IN
PERSON, OF EACH OF THE SEARCHES REQUIRED UNDER SUBPARAGRAPH ONE OF PARA-
GRAPH (A) OF THIS SUBDIVISION; AND
(III) DISCHARGE ANY LIEN OR ANY SECURITY INTEREST ENCUMBERING THE
MANUFACTURED OR MOBILE HOME, IF ANY EXIST.
(C) EVERY LEASE TO OWN CONTRACT, WHETHER AS A PART OF A LEASE, OR AS A
SEPARATE DOCUMENT, SHALL BE IN WRITING AND CLEARLY STATE ALL TERMS
S. 6177--A 3
GOVERNING THE TRANSACTION. SUCH TERMS SHALL BE SEPARATELY STATED AND, AT
A MINIMUM, INCLUDE THE FOLLOWING:
(I) A DESCRIPTION OF THE HOME TO BE LEASED, INCLUDING:
(A) THE NAME OF THE MANUFACTURER OF THE HOME;
(B) THE SERIAL NUMBER OF THE HOME; AND
(C) THE YEAR OF MANUFACTURE OF THE HOME;
(II) THE LOT NUMBER UPON WHICH THE HOME IS LOCATED IN THE MANUFACTURED
HOME PARK;
(III) THE PERIODIC RENT ATTRIBUTABLE SOLELY TO THE LOT UPON WHICH THE
MANUFACTURED OR MOBILE HOME IS LOCATED; SUCH LOT RENT MAY BE INCREASED
OVER THE TERM OF THE CONTRACT, BUT ONLY IN CONFORMITY WITH THE
PROVISIONS OF THIS SUBDIVISION;
(IV) THE AMOUNT OF THE LEASE TO OWN PAYMENTS REQUIRED TO BE MADE IN
ADDITION TO THE LOT RENT, INCLUDING THE PERIODIC AMOUNT TO BE PAID, THE
NUMBER OF PAYMENTS REQUIRED TO BE MADE OVER THE TERM OF THE AGREEMENT
AND THE TOTAL AMOUNT OF PAYMENTS TO BE MADE;
(V) THE DISCLOSURES REQUIRED BY THE FEDERAL CONSUMER LEASING ACT, 15
U.S.C.A. § 1667 ET. SEQ., AND REGULATION M, 12 C.F.R. PART 1013, WITHOUT
REGARD TO THE DOLLAR AMOUNT LIMITATIONS IN 12 C.F.R. § 1013.2(E)(1);
(VI) THE DURATION OF THE LEASE AND, IF DIFFERENT, THE DURATION OF THE
LEASE TO OWN OPTION;
(VII) INFORMATION ON WHETHER ANY FEES OR PUBLIC CHARGES ARE DELINQUENT
OR HAVE BEEN LEVIED AGAINST THE MANUFACTURED OR MOBILE HOME, INCLUDING
ANY THAT MAY HAVE BEEN IMPOSED BY OR OWED TO THE MANUFACTURED HOME PARK
OWNER;
(VIII) A PROVISION THAT THE MANUFACTURED HOME TENANT HAS THE RIGHT TO
ACCELERATE ANY LEASE TO OWN PAYMENTS;
(IX) WHETHER THE MANUFACTURED HOME PARK OWNER OR OPERATOR, OR LESSOR,
HAS RECEIVED WRITTEN NOTICE FROM ANY STATE OR LOCAL GOVERNMENT ENTITY
REQUIRING ANY REPAIRS OR IMPROVEMENTS TO BE MADE TO THE MANUFACTURED OR
MOBILE HOME THAT IS THE SUBJECT OF THE LEASE TO OWN CONTRACT;
(X) THE FOLLOWING NOTICE: "NOTICE TO THE BUYER: (1) DO NOT SIGN THIS
LEASE TO OWN CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK
SPACES. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED IN COPY OF THIS
LEASE TO OWN CONTRACT WHEN YOU SIGN IT. (3) UNDER THE LAW, YOU HAVE THE
RIGHT TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE"; AND
(XI) A PROVISION REQUIRING THAT IN THE EVENT THE MANUFACTURED HOME
PARK OWNER OR OPERATOR SELLS OR OTHERWISE TRANSFERS OWNERSHIP OF THE
MANUFACTURED HOME PARK TO ANOTHER PERSON OR ENTITY, PRIOR TO SUCH TRANS-
FER, THE MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL:
(A) INCLUDE A PROVISION IN THE TERMS OF THE AGREEMENT TRANSFERRING THE
MANUFACTURED HOME PARK REQUIRING THAT THE PURCHASER OR TRANSFEREE OF THE
MANUFACTURED HOME PARK ASSUME ALL OBLIGATIONS OF THE MANUFACTURED HOME
PARK OWNER OR OPERATOR WITH RESPECT TO EVERY LEASE TO OWN CONTRACT THEN
IN EFFECT IN THE MANUFACTURED HOME PARK;
(B) REFUND TO ALL MANUFACTURED HOME TENANTS WITH CURRENTLY EFFECTIVE
LEASE TO OWN CONTRACTS, THE FULL AMOUNT OF ALL LEASE TO OWN PAYMENTS
MADE BY THE MANUFACTURED HOME TENANT OVER THE ENTIRE TIME OF HIS OR HER
TENANCY PLUS INTEREST AT THE RATE FOR THIRTY YEAR FIXED RATE MORTGAGES
AS SHOWN ON THE THEN CURRENT PRIMARY MORTGAGE MARKET SURVEY PUBLISHED BY
THE FEDERAL HOME LOAN MORTGAGE CORPORATION (ALSO KNOWN AS "FREDDIE
MAC"); OR
(C) AGREE TO CONTINUE TO RETAIN OWNERSHIP OF THE HOME AND RECEIVE
LEASE TO OWN CONTRACT PAYMENTS UNTIL SUCH TIME AS OWNERSHIP OF THE HOME
PASSES TO THE MANUFACTURED HOME TENANT.
S. 6177--A 4
3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A LEASE TO
OWN CONTRACT SHALL BE PRESUMED TO BE VALID IF:
(A) IT COMPLIES WITH THE PROVISIONS OF THE FEDERAL CONSUMER LEASING
ACT, 15 U.S.C.A. § 1667 ET. SEQ., AND REGULATION M, 12 C.F.R. PART 1013,
WITHOUT REGARD TO THE DOLLAR AMOUNT LIMITATIONS IN 12 C.F.R. §
1013.2(E)(1);
(B) PAYMENTS FOR LOT RENT ARE SEPARATELY STATED AND NOT INCLUDED WITH-
IN THE AMOUNT OF PERIODIC PAYMENTS FOR THE LEASE OF THE HOME;
(C) IT PROVIDES THAT UPON PAYMENT OF THE PURCHASE OPTION PRICE AND ALL
PERIODIC LEASE PAYMENTS THEN DUE, THE LESSOR SHALL TRANSFER TITLE TO THE
HOME TO THE LESSEE; AND
(D) IN THE CASE OF LEASE TO OWN CONTRACTS ENTERED INTO ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBDIVISION, INCLUDES THE PROVISIONS SET FORTH IN
PARAGRAPH TWO OF THIS SUBDIVISION.
4. (A) A MANUFACTURED HOME PARK OWNER OR OPERATOR, OR LESSOR, WHO
WRONGFULLY TERMINATES THE TENANCY OF A MANUFACTURED HOME TENANT WITH A
LEASE TO OWN CONTRACT SHALL REFUND TO THE MANUFACTURED HOME TENANT THE
FULL AMOUNT OF ALL LEASE TO OWN PAYMENTS MADE BY THE MANUFACTURED HOME
TENANT OVER THE ENTIRE TIME OF HIS OR HER TENANCY PLUS INTEREST AT THE
RATE SPECIFIED IN SECTION 5-501 OF THE GENERAL OBLIGATIONS LAW.
(B) FOR PURPOSES OF THIS PARAGRAPH, THERE SHALL BE A REBUTTABLE
PRESUMPTION THAT A MANUFACTURED HOME PARK OWNER OR OPERATOR, OR LESSOR,
WRONGFULLY TERMINATED THE TENANCY IF (I) THE TERMINATION TAKES PLACE
WITHIN TWELVE MONTHS OF THE END OF THE TERM OF THE LEASE TO OWN CONTRACT
AND (II) AT THE TIME OF THE TERMINATION, THE MANUFACTURED HOME TENANT IS
IN GOOD STANDING AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH TWO OF
SUBDIVISION E OF THIS SECTION.
5. UNTIL SUCH TIME AS OWNERSHIP OF THE HOME PASSES TO THE MANUFACTURED
HOME TENANT, MANUFACTURED HOMES UNDER A LEASE TO OWN CONTRACT SHALL BE
DEEMED TO BE RENTED HOMES FOR PURPOSES OF THE PROVISIONS OF SUBDIVISION
M OF THIS SECTION. IF THE LEASE TO OWN CONTRACT IS BETWEEN A MANUFAC-
TURED HOME TENANT AND A LESSOR OTHER THAN A MANUFACTURED HOME COMMUNITY
OWNER OR OPERATOR, THE MANUFACTURED HOME SHALL BE DEEMED TO BE A RENTED
HOME FOR PURPOSES OF THE PROVISIONS OF THE WARRANTY TO HABITABILITY SET
FORTH IN SECTION TWO HUNDRED THIRTY-FIVE-B OF THIS ARTICLE.
6. NO MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL MAKE ANY MATERIAL
MISREPRESENTATION, EXPRESSLY OR BY IMPLICATION, IN ANY COMMERCIAL COMMU-
NICATION, REGARDING ANY OF THE TERMS OF THE LEASE TO OWN CONTRACT
INCLUDING, BUT NOT LIMITED TO:
(A) THE CHARGES FOR THE LEASE TO OWN CONTRACT OPTION;
(B) THE EXISTENCE, NATURE, OR AMOUNT OF FEES OR COSTS TO THE MANUFAC-
TURED HOME TENANT ASSOCIATED WITH THE LEASE TO OWN CONTRACT, INCLUDING
BUT NOT LIMITED TO MISREPRESENTATIONS THAT NO FEES ARE CHARGED;
(C) THE EXISTENCE, COST, PAYMENT TERMS, OR OTHER TERMS ASSOCIATED WITH
ANY ADDITIONAL PRODUCT OR FEATURE THAT IS OR MAY BE SOLD IN CONJUNCTION
WITH THE LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO CREDIT
INSURANCE OR CREDIT DISABILITY INSURANCE;
(D) THE TERMS, AMOUNTS, PAYMENTS, OR OTHER REQUIREMENTS RELATING TO
TAXES OR INSURANCE ASSOCIATED WITH THE LEASE TO OWN CONTRACT, INCLUDING
BUT NOT LIMITED TO MISREPRESENTATIONS ABOUT:
(I) WHETHER SEPARATE PAYMENT OF TAXES OR INSURANCE IS REQUIRED; OR
(II) THE EXTENT TO WHICH PAYMENT FOR TAXES OR INSURANCE IS INCLUDED IN
THE LOAN PAYMENTS, LOAN AMOUNT, OR TOTAL AMOUNT DUE FROM THE MANUFAC-
TURED HOME TENANT;
S. 6177--A 5
(E) ANY PREPAYMENT PENALTY ASSOCIATED WITH THE LEASE TO OWN CONTRACT,
INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS CONCERNING THE EXIST-
ENCE, NATURE, AMOUNT, OR TERMS OF SUCH PENALTY;
(F) THE VARIABILITY OF INTEREST, PAYMENTS, OR OTHER TERMS OF THE LEASE
TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS USING
THE WORD "FIXED";
(G) ANY COMPARISON BETWEEN:
(I) ANY RATE OR PAYMENT THAT WILL BE AVAILABLE FOR A PERIOD LESS THAN
THE FULL LENGTH OF THE LEASE TO OWN CONTRACT; AND
(II) ANY ACTUAL OR HYPOTHETICAL RATE OR PAYMENT;
(H) THE AMOUNT OF THE OBLIGATION, OR THE EXISTENCE, NATURE, OR AMOUNT
OF CASH OR CREDIT AVAILABLE TO THE MANUFACTURED HOME TENANT IN
CONNECTION WITH THE LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO
MISREPRESENTATIONS THAT THE MANUFACTURED HOME TENANT WILL RECEIVE A
CERTAIN AMOUNT OF CASH OR CREDIT AS PART OF THE TRANSACTION;
(I) THE EXISTENCE, NUMBER, AMOUNT, OR TIMING OF ANY MINIMUM OR
REQUIRED PAYMENTS, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS ABOUT
ANY PAYMENTS OR THAT NO PAYMENTS ARE REQUIRED IN THE LEASE TO OWN
CONTRACT;
(J) THE POTENTIAL FOR DEFAULT UNDER THE LEASE TO OWN CONTRACT, INCLUD-
ING BUT NOT LIMITED TO MISREPRESENTATIONS CONCERNING THE CIRCUMSTANCES
UNDER WHICH THE MANUFACTURED HOME TENANT COULD DEFAULT FOR NONPAYMENT OF
TAXES, INSURANCE, OR MAINTENANCE, OR FOR FAILURE TO MEET OTHER OBLI-
GATIONS;
(K) THE EFFECTIVENESS OF THE LEASE TO OWN CONTRACT IN HELPING THE
MANUFACTURED HOME TENANT RESOLVE DIFFICULTIES IN PAYING DEBTS, INCLUDING
BUT NOT LIMITED TO MISREPRESENTATIONS THAT ANY LEASE TO OWN CONTRACT CAN
REDUCE, ELIMINATE, OR RESTRUCTURE DEBT OR RESULT IN A WAIVER OR FORGIVE-
NESS, IN WHOLE OR IN PART, OF THE MANUFACTURED HOME TENANT'S EXISTING
OBLIGATION WITH ANY PERSON;
(L) THE ASSOCIATION OF THE LEASE TO OWN CONTRACT OR ANY PROVIDER OF
SUCH CONTRACT WITH ANY OTHER PERSON OR PROGRAM, INCLUDING BUT NOT LIMIT-
ED TO MISREPRESENTATIONS THAT:
(I) THE PROVIDER IS, OR IS AFFILIATED WITH, ANY GOVERNMENTAL ENTITY OR
OTHER ORGANIZATION; OR
(II) THE PRODUCT IS OR RELATES TO A GOVERNMENT BENEFIT, OR IS
ENDORSED, SPONSORED BY, OR AFFILIATED WITH ANY GOVERNMENT OR OTHER
PROGRAM, INCLUDING BUT NOT LIMITED TO THROUGH THE USE OF FORMATS,
SYMBOLS, OR LOGOS THAT RESEMBLE THOSE OF SUCH ENTITY, ORGANIZATION, OR
PROGRAM;
(M) THE SOURCE OF ANY COMMERCIAL COMMUNICATION, INCLUDING BUT NOT
LIMITED TO MISREPRESENTATIONS THAT A COMMERCIAL COMMUNICATION IS MADE BY
OR ON BEHALF OF THE MANUFACTURED HOME TENANT'S CURRENT MORTGAGE LENDER
OR SERVICER;
(N) THE RIGHT OF THE MANUFACTURED HOME TENANT TO RESIDE IN THE DWELL-
ING THAT IS THE SUBJECT OF THE LEASE TO OWN CONTRACT, OR THE DURATION OF
SUCH RIGHT;
(O) THE MANUFACTURED HOME TENANT'S ABILITY OR LIKELIHOOD TO OBTAIN ANY
LEASE TO OWN CONTRACT OR TERM, INCLUDING BUT NOT LIMITED TO MISREPRESEN-
TATIONS CONCERNING WHETHER THE MANUFACTURED HOME TENANT HAS BEEN PREAP-
PROVED OR GUARANTEED FOR ANY SUCH CONTRACT OR TERM;
(P) THE MANUFACTURED HOME TENANT'S ABILITY OR LIKELIHOOD TO OBTAIN A
REFINANCING OR MODIFICATION OF ANY LEASE TO OWN CONTRACT OR TERM,
INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS CONCERNING WHETHER THE
MANUFACTURED HOME TENANT HAS BEEN PREAPPROVED OR GUARANTEED FOR ANY SUCH
REFINANCING OR MODIFICATION; AND
S. 6177--A 6
(Q) THE AVAILABILITY, NATURE, OR SUBSTANCE OF COUNSELING SERVICES OR
ANY OTHER EXPERT ADVICE OFFERED TO THE MANUFACTURED HOME TENANT REGARD-
ING ANY LEASE TO OWN CONTRACT OR TERM, INCLUDING BUT NOT LIMITED TO THE
QUALIFICATIONS OF THOSE OFFERING THE SERVICES OR ADVICE.
7. IT IS A VIOLATION OF THIS SUBDIVISION FOR ANY PERSON TO OBTAIN, OR
ATTEMPT TO OBTAIN, A WAIVER FROM ANY MANUFACTURED HOME TENANT OF ANY
PROTECTION PROVIDED BY OR ANY RIGHT OF THE MANUFACTURED HOME TENANT
UNDER THIS SUBDIVISION.
8. (A) MANUFACTURED HOME PARK OWNERS OR OPERATORS OFFERING LEASE TO
OWN CONTRACTS SHALL KEEP, FOR A PERIOD OF TWENTY-FOUR MONTHS FROM THE
LAST DATE THE MANUFACTURED HOME PARK OWNER OR OPERATOR MADE OR DISSEM-
INATED THE APPLICABLE COMMERCIAL COMMUNICATION REGARDING ANY TERM OF ANY
LEASE TO OWN CONTRACT, THE FOLLOWING EVIDENCE OF COMPLIANCE WITH THIS
SECTION:
(I) COPIES OF ALL MATERIALLY DIFFERENT COMMERCIAL COMMUNICATIONS AS
WELL AS SALES SCRIPTS, TRAINING MATERIALS, AND MARKETING MATERIALS,
REGARDING ANY TERM OF ANY LEASE TO OWN CONTRACT, THAT THE MANUFACTURED
HOME PARK OWNER OR OPERATOR MADE OR DISSEMINATED DURING THE RELEVANT
TIME PERIOD;
(II) DOCUMENTS DESCRIBING OR EVIDENCING ALL LEASE TO OWN CONTRACTS
AVAILABLE TO MANUFACTURED HOME TENANTS DURING THE TIME PERIOD IN WHICH
THE PERSON MADE OR DISSEMINATED EACH COMMERCIAL COMMUNICATION REGARDING
ANY TERM OF ANY LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO THE
NAMES AND TERMS OF EACH SUCH LEASE TO OWN CONTRACT AVAILABLE TO MANUFAC-
TURED HOME TENANTS; AND
(III) DOCUMENTS DESCRIBING OR EVIDENCING ALL ADDITIONAL PRODUCTS OR
SERVICES (SUCH AS CREDIT INSURANCE OR CREDIT DISABILITY INSURANCE) THAT
ARE OR MAY BE OFFERED OR PROVIDED WITH THE LEASE TO OWN CONTRACTS AVAIL-
ABLE TO MANUFACTURED HOME TENANTS DURING THE TIME PERIOD IN WHICH THE
PERSON MADE OR DISSEMINATED EACH COMMERCIAL COMMUNICATION REGARDING ANY
TERM OF ANY LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO THE
NAMES AND TERMS OF EACH SUCH ADDITIONAL PRODUCT OR SERVICE AVAILABLE TO
MANUFACTURED HOME TENANTS.
(B) ANY PERSON WHO IS SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION
MAY KEEP THE RECORDS REQUIRED BY SUBPARAGRAPH (A) OF THIS PARAGRAPH IN
ANY LEGIBLE FORM, AND IN THE SAME MANNER, FORMAT, OR PLACE AS THEY KEEP
SUCH RECORDS IN THE ORDINARY COURSE OF BUSINESS.
9. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE DEEMED TO INVALIDATE
A LEASE TO OWN CONTRACT ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THIS
SUBDIVISION.
10. THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY WITHOUT REGARD TO
WHETHER THE MANUFACTURED HOME THAT IS THE SUBJECT OF THE TRANSACTION IS
A NEW HOME OR A RESALE OF A PREVIOUSLY-OWNED HOME.
§ 2. The real property law is amended by adding a new section 233-b to
read as follows:
§ 233-B. MANUFACTURED OR MOBILE HOME LEASE TO OWN CONTRACTS OUTSIDE OF
MANUFACTURED HOME PARKS. 1. DEFINITIONS. FOR PURPOSES OF THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE MEANING SET FORTH IN THIS SUBDIVI-
SION:
(A) "MANUFACTURED HOME LEASE TO OWN CONTRACT OUTSIDE OF MANUFACTURED
HOME PARKS" SHALL MEAN A LEASE TO OWN CONTRACT AS DEFINED IN PARAGRAPH
ONE OF SUBDIVISION Y OF SECTION TWO HUNDRED THIRTY-THREE OF THIS ARTICLE
WHERE THE MANUFACTURED OR MOBILE HOME THAT IS THE SUBJECT OF THE LEASE
TO OWN CONTRACT IS NOT LOCATED IN A MANUFACTURED HOME PARK, AS DEFINED
IN SUBDIVISION A OF SECTION TWO HUNDRED THIRTY-THREE OF THIS ARTICLE.
S. 6177--A 7
(B) "LESSEE" SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION, OR OTHER
LEGAL ENTITY WHO LEASES A MANUFACTURED OR MOBILE HOME SUBJECT TO A LEASE
TO OWN CONTRACT.
(C) "LESSOR" SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR ANY
OTHER LEGAL ENTITY WHO LEASES A MANUFACTURED OR MOBILE HOME SUBJECT TO A
LEASE TO OWN CONTRACT.
(D) "MANUFACTURED HOME" SHALL HAVE THE SAME MEANING AS SET FORTH IN
SUBPARAGRAPH FOUR OF PARAGRAPH A OF SUBDIVISION Y OF SECTION TWO HUNDRED
THIRTY-THREE OF THIS ARTICLE.
(E) "MOBILE HOME" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBPARA-
GRAPH FIVE OF PARAGRAPH A OF SUBDIVISION Y OF SECTION TWO HUNDRED THIR-
TY-THREE OF THIS ARTICLE.
2. REQUIREMENTS FOR LEASE TO OWN CONTRACTS OUTSIDE OF MANUFACTURED
HOME PARKS:
(A) ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, NO PERSON, CORPO-
RATION, ASSOCIATION OR ANY OTHER LEGAL ENTITY SHALL ENTER INTO A LEASE
TO OWN CONTRACT EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDI-
VISION;
(B) ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION, NO PERSON, CORPO-
RATION, ASSOCIATION OR OTHER LEGAL ENTITY SHALL OFFER A LEASE TO OWN
CONTRACT EXCEPT IN COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH TO
ESTABLISH THE OWNERSHIP OF THE HOME THAT IS TO BE TRANSFERRED PURSUANT
TO THE LEASE TO OWN CONTRACT:
(1) AT LEAST FIVE BUSINESS DAYS PRIOR TO THE EXECUTION OF THE LEASE TO
OWN CONTRACT, THE LESSOR SHALL, AT ITS OWN EXPENSE:
(A) PERFORM A CERTIFIED SEARCH THROUGH THE UNIFORM COMMERCIAL
CODE/LIEN SEARCH FROM THE DEPARTMENT OF STATE;
(B) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE MANUFACTURED OR MOBILE HOME IS LOCATED;
(C) PERFORM A RECORDS SEARCH FROM THE COUNTY CLERK OF THE COUNTY WHERE
THE LESSOR RESIDES, IF DIFFERENT FROM THE COUNTY WHERE THE MANUFACTURED
OR MOBILE HOME IS LOCATED;
(D) IF THE MOBILE HOME IS A NINETEEN HUNDRED NINETY-FIVE MODEL YEAR OR
NEWER MANUFACTURED HOME, PERFORM A RECORDS SEARCH FROM THE DEPARTMENT OF
MOTOR VEHICLES; AND
(E) (I) RECEIVE COPIES OF THE RESULTS OF THE SEARCHES REQUIRED UNDER
CLAUSE (A), (B), (C) OR (D) OF THIS SUBPARAGRAPH; AND
(II) PROVIDE A COPY TO THE LESSEE, EITHER BY CERTIFIED MAIL OR IN
PERSON, OF EACH OF THE SEARCHES REQUIRED UNDER THIS SUBPARAGRAPH; AND
(III) DISCHARGE ANY LIEN OR ANY SECURITY INTEREST ENCUMBERING THE
MANUFACTURED OR MOBILE HOME, IF ANY EXIST.
(C) EVERY LEASE TO OWN CONTRACT, WHETHER AS A PART OF A LEASE, OR AS A
SEPARATE DOCUMENT, SHALL BE IN WRITING AND CLEARLY STATE ALL TERMS
GOVERNING THE TRANSACTION. SUCH TERMS SHALL BE SEPARATELY STATED AND, AT
A MINIMUM, INCLUDE THE FOLLOWING:
(I) A DESCRIPTION OF THE HOME TO BE LEASED, INCLUDING:
(A) THE NAME OF THE MANUFACTURER OF THE HOME;
(B) THE SERIAL NUMBER OF THE HOME; AND
(C) THE YEAR OF MANUFACTURE OF THE HOME;
(II) THE ADDRESS WHERE THE HOME IS LOCATED;
(III) IF THE LESSOR IS ALSO THE OWNER OF THE LAND UPON WHICH THE MANU-
FACTURED OR MOBILE HOME IS LOCATED, THE PERIODIC RENT ATTRIBUTABLE SOLE-
LY TO THE LOT UPON WHICH THE MANUFACTURED OR MOBILE HOME IS LOCATED;
SUCH LOT RENT MAY BE INCREASED OVER THE TERM OF THE CONTRACT, BUT ONLY
UPON NINETY DAYS NOTICE AND NOT MORE THAN ONCE IN ANY YEAR;
S. 6177--A 8
(IV) THE AMOUNT OF THE LEASE TO OWN PAYMENTS REQUIRED TO BE MADE IN
ADDITION TO THE LOT RENT, IF ANY, INCLUDING THE PERIODIC AMOUNT TO BE
PAID, THE NUMBER OF PAYMENTS REQUIRED TO BE MADE OVER THE TERM OF THE
AGREEMENT AND THE TOTAL AMOUNT OF PAYMENTS TO BE MADE;
(V) THE DISCLOSURES REQUIRED BY THE FEDERAL CONSUMER LEASING ACT, 15
U.S.C.A. § 1667 ET. SEQ., AND REGULATION M, 12 C.F.R. PART 1013, WITH-
OUT REGARD TO THE DOLLAR AMOUNT LIMITATIONS IN 12 C.F.R. §
1013.2(E)(1);
(VI) THE DURATION OF THE LEASE AND, IF DIFFERENT, THE DURATION OF THE
LEASE TO OWN OPTION;
(VII) INFORMATION ON WHETHER ANY FEES OR PUBLIC CHARGES ARE DELINQUENT
OR HAVE BEEN LEVIED AGAINST THE MANUFACTURED OR MOBILE HOME, INCLUDING
ANY THAT MAY HAVE BEEN IMPOSED BY OR OWED TO THE MANUFACTURED HOME PARK
OWNER;
(VIII) A PROVISION THAT THE MANUFACTURED HOME TENANT HAS THE RIGHT TO
ACCELERATE ANY LEASE TO OWN PAYMENTS;
(IX) WHETHER THE MANUFACTURED HOME PARK OWNER OR OPERATOR HAS RECEIVED
WRITTEN NOTICE FROM ANY STATE OR LOCAL GOVERNMENT ENTITY REQUIRING ANY
REPAIRS OR IMPROVEMENTS TO BE MADE TO THE MANUFACTURED OR MOBILE HOME
THAT IS THE SUBJECT OF THE LEASE TO OWN CONTRACT;
(X) THE FOLLOWING NOTICE: "NOTICE TO THE BUYER: (1) DO NOT SIGN THIS
LEASE TO OWN CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK
SPACES. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED IN COPY OF THIS
LEASE TO OWN CONTRACT WHEN YOU SIGN IT. (3) UNDER THE LAW, YOU HAVE THE
RIGHT TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE."; AND
(XI) A PROVISION REQUIRING THAT, IN THE EVENT THE LESSOR IS THE OWNER
OF THE LAND UPON WHICH THE MANUFACTURED HOME IS LOCATED, SELLS OR OTHER-
WISE TRANSFERS OWNERSHIP OF THE LAND UPON WHICH THE MANUFACTURED HOME IS
LOCATED TO ANOTHER PERSON OR ENTITY OTHER THAN THE LESSEE, PRIOR TO SUCH
TRANSFER, THE LESSOR SHALL:
(A) INCLUDE A PROVISION IN THE TERMS OF THE AGREEMENT TRANSFERRING THE
LAND REQUIRING THAT THE PURCHASER OR TRANSFEREE OF THE LAND ASSUME ALL
OBLIGATIONS OF THE LESSOR WITH RESPECT TO THE LESSEE'S LEASE TO OWN
CONTRACT;
(B) REFUND THE FULL AMOUNT OF ALL LEASE TO OWN PAYMENTS MADE BY THE
LESSEE OVER THE ENTIRE TIME OF HIS OR HER TENANCY PLUS INTEREST AT THE
RATE FOR THIRTY YEAR FIXED RATE MORTGAGES AS SHOWN ON THE THEN CURRENT
PRIMARY MORTGAGE MARKET SURVEY PUBLISHED BY THE FEDERAL HOME LOAN MORT-
GAGE CORPORATION (ALSO KNOWN AS "FREDDIE MAC"); OR
(C) AGREE TO CONTINUE TO RETAIN OWNERSHIP OF THE HOME AND RECEIVE
LEASE TO OWN CONTRACT PAYMENTS UNTIL SUCH TIME AS OWNERSHIP OF THE HOME
PASSES TO THE LESSEE.
3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A LEASE TO
OWN CONTRACT SHALL BE PRESUMED TO BE VALID IF:
(A) IT COMPLIES WITH THE PROVISIONS OF THE FEDERAL CONSUMER LEASING
ACT, 15 U.S.C.A. § 1667 ET. SEQ., AND REGULATION M, 12 C.F.R. PART 1013,
WITHOUT REGARD TO THE DOLLAR AMOUNT LIMITATIONS IN 12 C.F.R. §
1013.2(E)(1);
(B) PAYMENTS FOR LOT RENT ARE SEPARATELY STATED AND NOT INCLUDED WITH-
IN THE AMOUNT OF PERIODIC PAYMENTS FOR THE LEASE OF THE HOME;
(C) IT PROVIDES THAT UPON PAYMENT OF THE PURCHASE OPTION PRICE AND ALL
PERIODIC LEASE PAYMENTS THEN DUE, THE LESSOR SHALL TRANSFER TITLE TO THE
HOME TO THE LESSEE; AND
(D) IN THE CASE OF LEASE TO OWN CONTRACTS ENTERED INTO ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBDIVISION, INCLUDES THE PROVISIONS SET FORTH IN
SUBDIVISION TWO OF THIS SECTION.
S. 6177--A 9
4. (A) A LESSOR WHO IS ALSO THE LANDOWNER OF THE LAND UPON WHICH THE
MANUFACTURED HOME IS LOCATED AND WHO WRONGFULLY TERMINATES THE TENANCY
OF A LESSEE SHALL REFUND TO THE LESSEE THE FULL AMOUNT OF ALL LEASE TO
OWN PAYMENTS MADE BY THE MANUFACTURED HOME TENANT OVER THE ENTIRE TIME
OF HIS OR HER TENANCY PLUS INTEREST AT THE RATE SPECIFIED IN SECTION
5-501 OF THE GENERAL OBLIGATIONS LAW.
(B) FOR PURPOSES OF THIS SUBDIVISION, THERE SHALL BE A REBUTTABLE
PRESUMPTION THAT A LESSOR WRONGFULLY TERMINATED THE TENANCY IF: (I) THE
TERMINATION TAKES PLACE WITHIN TWELVE MONTHS OF THE END OF THE TERM OF
THE LEASE TO OWN CONTRACT AND (II) AT THE TIME OF THE TERMINATION, THE
LESSEE IS NOT IN DEFAULT IN THE PAYMENT OF MORE THAN ONE MONTH'S RENT TO
THE LESSOR, AND IS NOT OTHERWISE IN VIOLATION OF THE TERMS OF THE LEASE
TO OWN CONTRACT OR THE TERMS OF THE LEASE GOVERNING THE LESSEE'S USE AND
OCCUPANCY OF THE LAND UPON WHICH THE MANUFACTURED HOME IS LOCATED.
5. UNTIL SUCH TIME AS OWNERSHIP OF THE HOME PASSES TO THE LESSEE,
MANUFACTURED HOMES UNDER A LEASE TO OWN CONTRACT SHALL BE DEEMED TO BE
RENTED HOMES FOR PURPOSES OF THE PROVISIONS OF THE WARRANTY TO HABITA-
BILITY SET FORTH IN SECTION TWO HUNDRED THIRTY-FIVE-B OF THIS ARTICLE.
6. NO LESSOR SHALL MAKE ANY MATERIAL MISREPRESENTATION, EXPRESSLY OR
BY IMPLICATION, IN ANY COMMERCIAL COMMUNICATION, REGARDING ANY OF THE
TERMS OF THE LEASE TO OWN CONTRACT INCLUDING, BUT NOT LIMITED TO:
(A) THE CHARGES FOR THE LEASE TO OWN CONTRACT OPTION;
(B) THE EXISTENCE, NATURE, OR AMOUNT OF FEES OR COSTS TO THE LESSOR
ASSOCIATED WITH THE LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO
MISREPRESENTATIONS THAT NO FEES ARE CHARGED;
(C) THE EXISTENCE, COST, PAYMENT TERMS, OR OTHER TERMS ASSOCIATED WITH
ANY ADDITIONAL PRODUCT OR FEATURE THAT IS OR MAY BE SOLD IN CONJUNCTION
WITH THE LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO CREDIT
INSURANCE OR CREDIT DISABILITY INSURANCE;
(D) THE TERMS, AMOUNTS, PAYMENTS, OR OTHER REQUIREMENTS RELATING TO
TAXES OR INSURANCE ASSOCIATED WITH THE LEASE TO OWN CONTRACT, INCLUDING
BUT NOT LIMITED TO MISREPRESENTATIONS ABOUT:
(I) WHETHER SEPARATE PAYMENT OF TAXES OR INSURANCE IS REQUIRED; OR
(II) THE EXTENT TO WHICH PAYMENT FOR TAXES OR INSURANCE IS INCLUDED IN
THE LOAN PAYMENTS, LOAN AMOUNT, OR TOTAL AMOUNT DUE FROM THE LESSOR;
(E) ANY PREPAYMENT PENALTY ASSOCIATED WITH THE LEASE TO OWN CONTRACT,
INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS CONCERNING THE EXIST-
ENCE, NATURE, AMOUNT, OR TERMS OF SUCH PENALTY;
(F) THE VARIABILITY OF INTEREST, PAYMENTS, OR OTHER TERMS OF THE LEASE
TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS USING
THE WORD "FIXED";
(G) ANY COMPARISON BETWEEN:
(I) ANY RATE OR PAYMENT THAT WILL BE AVAILABLE FOR A PERIOD LESS THAN
THE FULL LENGTH OF THE LEASE TO OWN CONTRACT; AND
(II) ANY ACTUAL OR HYPOTHETICAL RATE OR PAYMENT;
(H) THE AMOUNT OF THE OBLIGATION, OR THE EXISTENCE, NATURE, OR AMOUNT
OF CASH OR CREDIT AVAILABLE TO THE LESSEE IN CONNECTION WITH THE LEASE
TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS THAT
THE LESSEE WILL RECEIVE A CERTAIN AMOUNT OF CASH OR CREDIT AS PART OF
THE TRANSACTION;
(I) THE EXISTENCE, NUMBER, AMOUNT, OR TIMING OF ANY MINIMUM OR
REQUIRED PAYMENTS, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS ABOUT
ANY PAYMENTS OR THAT NO PAYMENTS ARE REQUIRED IN THE LEASE TO OWN
CONTRACT;
(J) THE POTENTIAL FOR DEFAULT UNDER THE LEASE TO OWN CONTRACT, INCLUD-
ING BUT NOT LIMITED TO MISREPRESENTATIONS CONCERNING THE CIRCUMSTANCES
S. 6177--A 10
UNDER WHICH THE LESSEE COULD DEFAULT FOR NONPAYMENT OF TAXES, INSURANCE,
OR MAINTENANCE, OR FOR FAILURE TO MEET OTHER OBLIGATIONS;
(K) THE EFFECTIVENESS OF THE LEASE TO OWN CONTRACT IN HELPING THE
LESSEE RESOLVE DIFFICULTIES IN PAYING DEBTS, INCLUDING BUT NOT LIMITED
TO MISREPRESENTATIONS THAT ANY LEASE TO OWN CONTRACT CAN REDUCE, ELIMI-
NATE, OR RESTRUCTURE DEBT OR RESULT IN A WAIVER OR FORGIVENESS, IN WHOLE
OR IN PART, OF THE LESSEE'S EXISTING OBLIGATION WITH ANY PERSON;
(L) THE ASSOCIATION OF THE LEASE TO OWN CONTRACT OR ANY PROVIDER OF
SUCH CONTRACT WITH ANY OTHER PERSON OR PROGRAM, INCLUDING BUT NOT LIMIT-
ED TO MISREPRESENTATIONS THAT:
(I) THE PROVIDER IS, OR IS AFFILIATED WITH, ANY GOVERNMENTAL ENTITY OR
OTHER ORGANIZATION; OR
(II) THE PRODUCT IS OR RELATES TO A GOVERNMENT BENEFIT, OR IS
ENDORSED, SPONSORED BY, OR AFFILIATED WITH ANY GOVERNMENT OR OTHER
PROGRAM, INCLUDING BUT NOT LIMITED TO THROUGH THE USE OF FORMATS,
SYMBOLS, OR LOGOS THAT RESEMBLE THOSE OF SUCH ENTITY, ORGANIZATION, OR
PROGRAM;
(M) THE SOURCE OF ANY COMMERCIAL COMMUNICATION, INCLUDING BUT NOT
LIMITED TO MISREPRESENTATIONS THAT A COMMERCIAL COMMUNICATION IS MADE BY
OR ON BEHALF OF THE LESSEE'S CURRENT MORTGAGE LENDER OR SERVICER;
(N) THE RIGHT OF THE LESSEE TO RESIDE IN THE DWELLING THAT IS THE
SUBJECT OF THE LEASE TO OWN CONTRACT, OR THE DURATION OF SUCH RIGHT;
(O) THE LESSEE'S ABILITY OR LIKELIHOOD TO OBTAIN ANY LEASE TO OWN
CONTRACT OR TERM, INCLUDING BUT NOT LIMITED TO MISREPRESENTATIONS
CONCERNING WHETHER THE LESSEE HAS BEEN PREAPPROVED OR GUARANTEED FOR ANY
SUCH CONTRACT OR TERM;
(P) THE LESSEE'S ABILITY OR LIKELIHOOD TO OBTAIN A REFINANCING OR
MODIFICATION OF ANY LEASE TO OWN CONTRACT OR TERM, INCLUDING BUT NOT
LIMITED TO MISREPRESENTATIONS CONCERNING WHETHER THE LESSEE HAS BEEN
PREAPPROVED OR GUARANTEED FOR ANY SUCH REFINANCING OR MODIFICATION; AND
(Q) THE AVAILABILITY, NATURE, OR SUBSTANCE OF COUNSELING SERVICES OR
ANY OTHER EXPERT ADVICE OFFERED TO THE LESSEE REGARDING ANY LEASE TO OWN
CONTRACT OR TERM, INCLUDING BUT NOT LIMITED TO THE QUALIFICATIONS OF
THOSE OFFERING THE SERVICES OR ADVICE.
7. IT IS A VIOLATION OF THIS SECTION FOR ANY PERSON TO OBTAIN, OR
ATTEMPT TO OBTAIN, A WAIVER FROM ANY LESSEE OF ANY PROTECTION PROVIDED
BY OR ANY RIGHT OF THE LESSEE UNDER THIS SECTION.
8. (A) LESSORS OFFERING LEASE TO OWN CONTRACTS SHALL KEEP, FOR A PERI-
OD OF TWENTY-FOUR MONTHS FROM THE LAST DATE THE LESSOR MADE OR DISSEM-
INATED THE APPLICABLE COMMERCIAL COMMUNICATION REGARDING ANY TERM OF ANY
LEASE TO OWN CONTRACT, THE FOLLOWING EVIDENCE OF COMPLIANCE WITH THIS
SECTION:
(I) COPIES OF ALL MATERIALLY DIFFERENT COMMERCIAL COMMUNICATIONS AS
WELL AS SALES SCRIPTS, TRAINING MATERIALS, AND MARKETING MATERIALS,
REGARDING ANY TERM OF ANY LEASE TO OWN CONTRACT, THAT THE LESSOR MADE OR
DISSEMINATED DURING THE RELEVANT TIME PERIOD;
(II) DOCUMENTS DESCRIBING OR EVIDENCING ALL LEASE TO OWN CONTRACTS
AVAILABLE TO LESSEES DURING THE TIME PERIOD IN WHICH THE PERSON MADE OR
DISSEMINATED EACH COMMERCIAL COMMUNICATION REGARDING ANY TERM OF ANY
LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO THE NAMES AND TERMS
OF EACH SUCH LEASE TO OWN CONTRACT AVAILABLE TO LESSEES; AND
(III) DOCUMENTS DESCRIBING OR EVIDENCING ALL ADDITIONAL PRODUCTS OR
SERVICES (SUCH AS CREDIT INSURANCE OR CREDIT DISABILITY INSURANCE) THAT
ARE OR MAY BE OFFERED OR PROVIDED WITH THE LEASE TO OWN CONTRACTS AVAIL-
ABLE TO LESSEES DURING THE TIME PERIOD IN WHICH THE PERSON MADE OR
DISSEMINATED EACH COMMERCIAL COMMUNICATION REGARDING ANY TERM OF ANY
S. 6177--A 11
LEASE TO OWN CONTRACT, INCLUDING BUT NOT LIMITED TO THE NAMES AND TERMS
OF EACH SUCH ADDITIONAL PRODUCT OR SERVICE AVAILABLE TO LESSEES.
(B) ANY PERSON WHO IS SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION
MAY KEEP THE RECORDS REQUIRED BY SUBPARAGRAPH (A) OF THIS SUBDIVISION IN
ANY LEGIBLE FORM, AND IN THE SAME MANNER, FORMAT, OR PLACE AS THEY KEEP
SUCH RECORDS IN THE ORDINARY COURSE OF BUSINESS.
9. NOTHING CONTAINED IN THIS SECTION SHALL BE DEEMED TO INVALIDATE A
LEASE TO OWN CONTRACT ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THIS
SECTION.
10. THE PROVISIONS OF THIS SECTION SHALL APPLY WITHOUT REGARD TO
WHETHER THE MANUFACTURED HOME THAT IS THE SUBJECT OF THE TRANSACTION IS
A NEW HOME OR A RESALE OF A PREVIOUSLY-OWNED HOME.
11. NO LENDOR SHALL:
(A) PLACE OR HOLD ANY MORTGAGE ON ANY MANUFACTURED OR MOBILE HOME SOLD
UNDER A LEASE TO OWN CONTRACT; OR
(B) CAUSE ANY INSURANCE COVERAGE ON THE MANUFACTURED OR MOBILE HOME TO
LAPSE OR END FOR THE DURATION OF THE LEASE OWNED CONTRACT.
12. EXCEPT AS OTHERWISE PROVIDED, FAILURE OF THE LESSOR TO COMPLY WITH
THIS SECTION SHALL GIVE THE LESSEE THE UNCONDITIONAL RIGHT TO CANCEL THE
LEASE WITH THE OPTION TO PURCHASE CONTRACT AND RECEIVE IMMEDIATE REFUND
OF ALL PAYMENTS AND DEPOSITS MADE ON ACCOUNT OF OR IN CONTEMPLATION OF
THE LEASE WITH THE OPTION TO PURCHASE CONTRACT.
§ 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.