CONTRACT TERMS AND CONDITIONS

For fractional sized instruments only please note:

1. You do not have an option to purchase the Leased Property at the end of the lease term. Additionally, you may not purchase the Leased Property at any time prior to the end of the lease term.
2. You are required to pay a monthly fee for Lessor’s Replacement, Service and Repair (R/S/R) coverage, the terms and conditions of which are found in Lease of Musical Instrument: Standard Terms and Conditions. The R/S/R coverage is an additional $6 per month. You will not be required to acquire separate insurance in connection with this Lease. Lessor will not acquire insurance in connection with this Lease.

For both Lease with Option to Purchase Contracts and Fractional Size Contracts

Insurance. You will not be required to acquire insurance in connection with this Lease; however, if the Leased Property is lost or stolen and is not otherwise covered by an insurance policy or the R/S/R coverage, you will be financially responsible for replacement of the Leased Property at full price. Lessor will not acquire insurance in connection with this Lease.

Standards for Wear and Use. The following standards are applicable for determining unreasonable or excess wear and use of the Leased Property: satisfactory playing condition; no significant cosmetic damage, corrosion, bacteria, or missing parts; and no repairs by any person other than Lessor.

Maintenance. You are responsible for maintaining the Leased Property and all accessories in good condition. We are responsible for any maintenance and repair covered by the R/S/R coverage (if coverage is accepted). See Lease of Musical Instrument: Standard Terms and Conditions for the terms and conditions governing the R/S/R coverage.

Warranties; Disclaimer of Warranties. The Leased Property is provided as-is. You represent and warrant to Lessor that you have inspected the Leased Property prior to delivery. WITHOUT LIMITING THE FOREGOING, LESSOR MAKES NO REPRESENTATIONS AND GRANTS NO WARRANTIES, EXPRESS OR IMPLIED, EITHER INFACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND LESSOR SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE.
Without limiting and notwithstanding any other provision of this Lease, Lessor hereby agrees to assign to Lessee, solely for the purpose of making any such claim, all of Lessor’s rights against the manufacturer of the Leased Property for breach of warranty or other representation made by manufacturer regarding the Leased Property during the lease term to the extent the same are assignable.

Early Termination and Default. You may terminate this Lease at any time by returning the Leased Property to Lessor at the address set forth above in the same condition in which you received the Leased Property, normal wear and use excepted, before the end of the lease term. The charge for such early termination is $0, and upon such return, you will have no further obligation to pay monthly lease payments, so long as the account is current and no unpaid Lease balance remains. Lessor may terminate this Lease upon Lessee’s failure to make the monthly lease payments as agreed above. If terminated by Lessor, Lessor has right to demand immediate return of the Leased Property and immediate payment of all past due amounts.

REPLACEMENT, SERVICE AND REPAIR COVERAGE (R/S/R)

If elected by you, the following terms apply to the R/S/R coverage:
REPLACEMENT OF LEASED PROPERTY: In the event of loss by fire, theft or irreparable damage, the Leased Property will be replaced with one of equal value (as determined by Lessor as of the date of such event giving rise to such replacement) at no charge. Proof of theft must be substantiated by reporting same to local police or sheriff’s department. A copy of police or sheriff’s investigation report dated within seven (7) days of the theft must be received by Lessor before replacement can be made. PLEASE NOTE THAT YOUR REPLACEMENT COVERAGE WILL BE VOID IF STOLEN LEASED PROPERTY IS NOT REPORTED AS STOLEN TO THE PROPER LAW ENFORCEMENT AGENCY
WITHIN SEVEN (7) DAYS OF LOSS. Lessor must receive this report within ten (10) days of the loss. Lessor’s staff will investigate your claim, prepare the additional forms that must be signed by you to complete your claim, and replace the Leased Property with a similar make and model for you. Judgment of irreparable damage will be made solely by Lessor. Loss caused by Lessee’s negligence will not be covered under this section. Case not included.

REPLACEMENT OF CERTAIN COMPONENTS OF THE LEASED PROPERTY: Before the end of the lease term, Lessor shall, at Lessee’s request, (i) for woodwind instruments, replace one (1) mouthpiece; (ii) for stringed orchestra instruments, replace the strings on any Leased Property, such replacement being unlimited; and (iii) for stringed orchestra instruments, replace one (1) bow.

SERVICE: All adjustments and repairs necessary to keep the Leased Property in playing condition will be made at no cost to Lessee. Coverage does not include replacement of expendable accessories, restoration of finish, or cosmetic damage such as minor dents or abrasions. Repairs required due to Lessee’s negligence are not covered under this section. Case not included.

REPAIR: With any accidental damage to the Leased Property, which interferes with its performance, the Leased Property will be restored to playing condition including replacement of parts at no cost to Lessee. Damage due to negligence by Lessee is not covered under this section. No person other than Lessor may repair the Leased Property and if Lessee has the Leased Property repaired by a person other than Lessor, the R/S/R coverage is void. Case not included.

If the Leased Property is damaged as a result of an accident, we must have a note explaining the accident from the teacher, school principal, or other responsible adult. Bring us the Leased Property and note so that we may determine if your situation qualifies for coverage under R/S/R coverage. Only Lessor determines what qualifies as an accident and what does not qualify for R/S/R coverage.

PLEASE NOTE THAT YOU ARE RESPONSIBLE FOR ALL LEASE PAYMENTS UP TO THE DATE LESSOR RECEIVES THE WRITTEN REPORT OF THE LOSS AND/OR DAMAGE. R/S/R COVERAGE CLAIMS WILL BE SETTLED ONLY ON ACCOUNTS THAT ARE NOT PAST DUE.

ADDITIONAL TERMS:
DEFAULT: You are in default if:
A. We do not receive a monthly lease payment from you on or before the date it is due; or
B. You are in breach of any provision of this Lease; or
C. You make any statement or representation in connection with this Lease which is false or incorrect in any material respect; or
D. Insolvency actions are begun by or against you. Insolvency includes situations where you are unable to pay all your debts as they become due.

OWNERSHIP OF LEASED PROPERTY: The title to the Leased Property shall be and remain in Lessor, subject only to Lessee’s right of possession and use during the lease term. Lessee may not sell, convey, transfer, encumber, part with possession of, assign or sublease, the Leased Property or any of Lessee’s rights hereunder, except with Lessor’s written consent, and any such purported transaction shall be of no force or effect without such consent.

ENTIRE AGREEMENT: No oral promises or statements are part of this Lease.

NO WAIVER OF RIGHTS: Lessor does not waive its right to have future payments made when due if Lessor accepts a late or partial payment or delays the enforcement of its rights on any occasion.

INVALID PROVISIONS: If any part of this Lease becomes invalid or unenforceable, the remainder of the Lease will be valid and enforceable.

LATE CHARGE: Any payments not received within ten (10) days of date due will be subject to a $10.00 late charge.

TERMINATION AND DEFAULT: Lessor may terminate this Lease upon a default. If terminated by Lessor, Lessor has right to demand immediate return of the Leased Property and immediate payment of all past due amounts and amounts due up to the return of the Leased Property. Lessor shall have all rights afforded to Lessor under the Uniform Commercial Code of North Carolina.

NOTICE TO LESSEE

1. ATTORNEY’S FEES, COSTS AND VENUE. If you are in default and collection proceedings are undertaken, you are responsible for all collection costs and fees as permitted by North Carolina law. If this Lease is breached or if Lessor collects any payments or brings any legal proceeding at law or in equity, or in bankruptcy, receivership or other court proceedings, Lessee agrees to pay all costs of collection, including, but not limited to, court costs and reasonable attorneys’ fees to the maximum extent permitted by North Carolina law. The venue of any action filed shall be in Guilford County or the Central District of the United States District Court for North Carolina. You consent to jurisdiction in Guilford County, North Carolina.

2. All notices under this Lease shall be sent to Lessor at the address listed on this Lease and to Lessee at the address on file with Lessor.