Definitions.

Sec. 2. As used in this act: "Lessee" means a person who leases property pursuant to a rental-purchase agreement. "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. "Period" means a day, week, 1 month, or other subdivision of a year. "Rental-purchase agreement" means an agreement for the use of personal property by a lessee primarily for personal, family, or household purposes, for an initial period of 4 months or less that is automatically renewable with each payment after the initial period and that permits the lessee to become the owner of the property. Rental-purchase agreements shall not include any of the following: 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. 1602(g). A lease which constitutes a consumer lease as defined in 12 C.F.R. 213.2(a)(6). Any lease for agricultural, business, or commercial purposes. Any lease made to an organization. Any lease of money or intangible personal property. A lease or agreement which constitutes a retail installment transaction as defined in section 2 of the retail installment sales act, Act No. 224 of the Public Acts of 1966, being section 445.852 of the Michigan Compiled Laws. History: 1984, Act 424, Eff. Mar. 29, 1985