RENTAL TERMS AND CONDITIONS

• 1. Your payments are due each month, on the same day of the month as the date of this contract. All payments are due in advance. There are no refunds on rental payments, and Initial Payments and monthly payments will not be prorated. There is no "grace period". You will receive payment coupons within 14 days after your initial payment. Errors in the billing process and with the postal service may occur. You are responsible for your monthly payments even if you do not receive your payment coupons. Monthly payments are not contingent on school schedules, teacher availability or time in the repair shop.
• 2. The total number of payments to acquire ownership includes all costs included in the initial payment but does not include other charges such as late payment fees or the initial processing fee. The "Cash Price" on the date of the contract is equal to the Rental Price less a 30% discount
• 3. Additional fees which may be charged:
  Late Payment Fee: $3.00 on payments not received within 10 days of due date.
  Processing Fee: $10.00 per contract (one per family if renting more than one instrument).
  Returned Check Fee: "equal to that assessed by the merchant's bank" will be charged.
  Should the Customer misplace their payment coupons,the Company will provide a second set at a $5.00 fee.
  Shipping Fee: $15.00 should the Customer request that an instrument be shipped.
• 4. The Customer does not acquire ownership of the instrument until all payments are made, or you exercise your early buyout option (see below). You may not sell, pawn, mortgage, dispose of, or pledge the instrument as security until ownership is acquired. All changes of residence must be reported to the Company immediately. You may not move this instrument out of your state of residence (as of the date of this contract) without the expressed written consent of the NK Music Family of Companies.
• 5. If the property is lost, stolen, damaged or destroyed, the Customer is responsible for all payments and fees past due and owing to the Company at the time of loss, plus the Early Buyout price (if the account is current) or the difference between rental payments made (less RPP payments and any fees) and the Rental Price, unless your claim is covered under the Liability Damage Waiver provisions in this agreement (See #8).
• 6. Maintenance and service must be performed by the Company during the rental period and the Company will transfer any applicable manufacturer's warranties upon transfer of ownership. All repairs must be performed by a factory-authorized NK Music technician in our shop.
• 7. DEFAULT: You will be in default:
  (a) if you do not make your payments in accordance with this agreement.
  (b) if you sell, pawn, or mortgage, pledge or dispose of the instrument. <
  If rental payments are not made when due, the Company shall have the right to take possession of the instrument after any notices of right to cure have been provided. The Customer has the right to reinstate this agreement under the terms and conditions set forth in Article XI of the Maine Consumer Credit Code - Rental Purchase Agreements.
• 8. You are responsible for loss, theft, damage to or destruction of the instrument (normal wear and tear excepted.) You may elect to purchase our RPP (Renter's Protection Plan) to cover most of this liability. If you elect to purchase RPP by paying the monthly fee of $4.95, and are not in default of this agreement, you will not be responsible for the repair or replacement of the instrument except in the case of willful damage to or disposal of the instrument. See separate Liability Damage Waiver form for complete terms and conditions of coverage. RPP is not in effect if your account is not current. You are fully responsible for the cost of repair or replacement of the instrument, up to fair market value, if you are behind in your payments at the time of the damage to or loss of the instrument.