RENT-TO-OWN

CONTRACT TERMS AND CONDITIONS

BAND INSTRUMENTS AND FULL-SIZE ORCHESTRA INSTRUMENTS

MONTHLY RENTAL – This is a month to month lease with the option to purchase. 100% of the monthly rental payments minus M&R (Maintenance and Replacement Insurance) can be applied toward the purchase of the instrument.

PAYMENTS – For the Renter’s convenience we offer Autopay. The rental payment will automatically be charged to a credit or debit card on file on the same day each month. It is up to the Renter to ensure payments are received on time. Statements are only mailed as a reminder when the payment is past due.

Payments may also be made through the KBI website, by phone, in store or mailing a check. If you choose not to use Autopay, we reserve the right to perform a credit check. Rental fees are nonrefundable and nontransferable. All online rentals will automatically be set up on autopay. If the Renter would prefer to pay by another method, it is up to the Renter to contact KBI.

OWNERSHIP OF THE INSTRUMENT- KBI Music Shoppe retains title of ownership throughout the rental period. When regular payments equal the agreed purchase price, established at the time of rental, title of ownership will be passed to the Renter. Renter agrees to notify KBI if there is a change of address.

DEFAULT – If a payment is not received within 10 days of the monthly contract date, this contract is terminated and KBI reserves the right to retain possession of the instrument on sight or demand with or without the Renter’s knowledge. The Renter is responsible for all costs and expenses incurred in collection including attorney’s fees and court costs. Late Payments are subject to a $10.00 late payment fee each month. Returned Checks will be charged a $30 NSF fee.

If the Renter is more than 30 days late in paying any sums under this agreement, the Renter authorizes KBI Music Shoppe to charge the credit card on file for any sums due including the remaining purchase price less credit for previous paid rent, if the instrument is not returned to KBI Music Shoppe.

RETURNING THE INSTRUMENT – If the Renter should decide to no longer continue the lease, the instrument may be returned at any time. Call 540-891-7800 or email [email protected] for proper return authorization and instructions. Monthly rental rates are not prorated; therefore refunds are not issued if an instrument is returned. The Renter is liable for all payments and total cost of the rental unless there has been authorization from KBI.

EXCHANGING AN INSTRUMENT - The instrument may be exchanged up to 18 months into the contract for equal or greater value student level instrument should the student change instruments. This exchange is ONLY for the student who is listed on the original contract. After 18 months, a letter is required from the band director confirming the student is changing instruments. When applicable any difference in price categories between instruments will be reflected in the rental contract.

LOCATION OF INSTRUMENT – The Renter cannot move the instrument from the address shown in this agreement or school without notifying KBI. The Renter is responsible to update all personal information. The Renter may not sell, pawn, or dispose of the instrument while this contract is in effect.

MAINTENANCE AND REPLACEMENT COVERAGE (M&R) - REQUIRED Maintenance and replacement coverage is required on all rentals. This coverage includes normal adjustments and routine maintenance. Any accidental damage to the instrument which interferes with its performance will be restored to playing condition including replacement parts. All maintenance and repair MUST be made by KBI Music Shoppe.

Coverage does not include deterioration of the instrument’s appearance from scratches, dents, surface wear etc. that do not affect playability. It does NOT include LOST or MISPLACED parts or mouthpieces or expendable accessories like reeds, oils, rosin, drumsticks and mallets, etc. CASES are NOT included. Neglect and intentional damage are NOT covered. KBI determines what is accidental and what is neglect.

Replacement coverage for the following is included for the duration of the rental period. For woodwind instruments –A) 1 mouthpiece and 1 ligature due to damage. For string instruments- B) Replacement of strings C) Replacement of 1 bow due to damage.

If the instrument is stolen before the contract is paid in full, KBI will replace it with an instrument of equal age, value and quality as determined by KBI, provided all payments are current. Stolen instruments must be reported to the police immediately and a police report is required to claim damages of theft. M&R payments are not refundable and do not apply toward the purchase of the instrument.

M&R coverage will be considered “Not in Force” when payment lapses beyond the 10 day grace period.