DEFINITION OF TERMS: In this Agreement, "we," "us," and "our" refer to Marshall Music Company, Lessor. "You" and "your" refer to the person(s) signing this Agreement as rental customer/lessee. "Instrument" refers to the music instrument being rented, described on the face of this agreement. "Agreement" refers to this Rental Purchase Agreement.
FREE REPAIR AND MAINTENANCE: We will make all adjustments and repairs necessary to keep the Instrument in playing condition at no charge while you are renting. We will replace the Instrument if it is damaged beyond repair, again at no cost to you. We are responsible for performing all repairs and will not be liable for repairs done by others. We will not pay for damage to the Instrument due to your malicious or wanton misconduct. You must be current with rental payments to get repairs or replacement. Only the instrument, case and mouthpiece are covered.
EXCHANGE POLICY: 100% of rent equity (total payments you have made less 6% sales tax) applies to the exchange to a different student line instrument. You can exchange the Instrument for a different student line instrument without losing any rights or options you have under this Agreement. You must get the band director to approve such exchanges. A change in rental rate may be necessary, as well as number of months to own exchange instrument. If exchanging to a string instrument, a new agreement will need to be signed and there will be a different due date.
TERMINATION: You may terminate this Agreement at any time by returning the Instrument to us in good condition, fair wear and tear excepted, or by making arrangements with us for its return and paying any past due amounts you owe. We may terminate this Agreement if you fail to keep any of your agreements. We may notify you of termination in writing, or by e-mail, or by telling you. You agree to pay us the fair market value of the Instrument if you fail to return it to us when this Agreement terminates or make prompt arrangement with us for its return. YOU REMAIN LIABLE FOR RENTAL PAYMENTS UNTIL THE INSTRUMENT IS RETURNED TO US.
LIABILITY FOR LOSS: Marshall will indemnify you from the loss of the Instrument from all causes. In the case of theft you are responsible for providing Marshall Music Company with a police report. Account Payments must be current.
DEFAULT AND REINSTATEMENT: If you fail to make a timely rental renewal payment (your regular monthly payment), this Agreement expires. You can reinstate it without losing any rights or options you have by making all payments due or voluntarily returning the Property to us within 7 days after the next payment due date. If you return the Property to us within that time, then you will have 90 days from the date of return to reinstate by making all payments due. If you reinstate, we will furnish you with the same Instrument or an instrument of comparable quality and condition.
If you do not make a timely rental renewal payment and do not exercise your reinstatement rights, this Agreement terminates. You must return the Instrument to us immediately and pay us all amounts past due. We may pick up the Instrument at school without your consent. If you do not return the Instrument to us, you are liable for its fair market value as of the date of termination. If we repossess the instrument all rights will be terminated and you must pay us our reasonable costs for recovering our Instrument, which may include repossession expenses, court costs, and attorneys' fees.
MARSHALL MUSIC CO. retains title and security interest in the instrument until rent, in full amount of the cash price, has been paid, and I acknowledge that it is a felony to sell, mortgage, remove from the State of Michigan, pawn or otherwise dispose of rental merchandise with the intent to defraud. NOTICE OF ASSIGNMENT BY MARSHALL MUSIC CO. TO STERLING NATIONAL BANK. Lessor has assigned and granted a security interest to Sterling National Bank ("Assignee") in all of its interests in the leased instrument and property, this agreement, and all supplements. Marshall Music has no right to grant additional assignments or security interests. Assignee may be contacted at 28001 Cabot Drive, Suite 240, Novi, Michigan 48377. This agreement is treated as the only original of this agreement.
OTHER FEES: A LATE CHARGE OF $3.00 is charged on any payment that is more than 6 days late ($4.00 if monthly payment is $40.00 or more). RETURNED CHECK FEE: $35.00.
BILLING CREDIT COLLECTIONS: All payments are due in advance. There are no refunds on rental payments. You will not receive a statement or coupons if you choose the automatic payment option. If you choose the manual option you will be mailed payment coupons.
(Note: You are responsible for monthly payments even if you do not receive a statement or coupons.) Marshall Music has a security interest in the instrument. You agree not to pawn, sell or pledge as security the instrument in this agreement until paid for in full. The instrument must remain at the address shown in this agreement. You must inform us of any address change. You authorize us to obtain a credit report and allow us or assigned agents to contact you via phone, email or text during the term of this agreement. If account is past due a repossession may occur at your home. Our office will try to accommodate a change party responsible for this agreement. (It will require a credit application from a new party responsible and a signed change authorization form.)
CANCELLATION: You have 3 (three) days to cancel this agreement and upon return of all items to receive a full refund. Notice of cancellation must be made by midnight of the third day.
RETURN PROCEDURE: Please contact the Marshall Music store servicing your rental to notify us of your intent to return this instrument. You will be given instructions for the best way to return your instrument, and our file will be flagged as a pending return.
RENTAL PURCHASE OWNERSHIP: You will not obtain any ownership interest in the Instrument until you pay the Total Cost or exercise your Early Purchase Option. The Total Cost includes tax, does not include certain "other charges" that are disclosed in this Agreement. If you obtain ownership we will transfer any unexpired manufacturer's warranty to you if allowed by the terms of the warranty.
NOTICE TO BUYER: 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. You may prepay the unpaid balance at any time without a penalty and you may be entitled to receive a refund of unearned charges in accordance with the law.
I grant permission for Marshall Music to retrieve this rental instrument from the school if I should fail to keep rental payments current. I additionally grant permission to the instrument music director or school administrator to give this rental instrument to the Marshall's school representative.
NOTICE: This agreement is regulated by State Law and may be enforced by the Attorney General or by private legal action.