Star Music Online Rental Agreement

**If you have any questions concerning our rental policy, please call (803) 252-8133**

1 RENTAL OWNERSHIP. The Total Cost of Rental does not include other charges, including but not limited to the optional F&T and CMC, late fees or applicable tax. You will not own the instrument until you have paid the total amount necessary for ownership.

2 EARLY PURCHASE OPTION – In the first 90 days after the date of the contract you may purchase the instrument at the Early Purchase Price stated on the contract. Credit will be given for rental payments made, excluding sales tax, F&T, CMC, and other fees. This offer is void after 90 days of contract date.

3 LIABILITY FOR LOSS OR DAMAGE. You are fully responsible for loss, theft, damage to or destruction of the instrument from all causes in excess of normal wear and tear, up to a maximum of the contracted price of the instrument.

4 FIRE AND THEFT COVERAGE (F&T) If you choose this option by paying the F&T fee and are not in default of this Agreement, you will not be liable for loss of or damage to the instrument due to theft or fire. For theft, you must furnish us with a Police Report. All payments made prior to the date of loss or damage are transferable to an instrument of like quality as determined by Star Music and determined by the length of rental.

5 COMPREHENSIVE MAINTENANCE COVERAGE (CMC). If you choose this option by paying the CMC fee and are not in default of this Agreement and the instrument becomes damaged or deteriorates in performance for reasons other than misuse, negligence, (as determined by Star Music) or unauthorized repairs, Star Music will repair and regulate the instrument at no charge for the period of this agreement. All repairs under this agreement must be made by Star Music. The deterioration of appearance (scratches, minor dents, finish, etc.) is not covered insofar as it does not affect the performance of the instrument. Also excluded from the coverage are items such as strings, bridges, reeds, oils, drumheads, bow hair, etc. If any payment is more than 10 days past due, CMC shall be canceled until the account is paid current (including all late charges and finance charges). If you do not choose the CMC option, you are responsible for maintaining the instrument in good working condition during this Agreement. Our standard repair rates apply if the instrument is returned in a damaged condition or otherwise needs repairs up to a maximum charge equal to the contracted price of the instrument.

6 OTHER FEES. Late: $10 on payments not received within 15 days after the due date. Returned Check: $45.00. Repossession: $100. Finance Charges in the amount of 18% will be added to the rental if the account becomes 60 days past due. The finance charge will remain in effect for the duration of the contract.

7 DEFAULT. If you fail to make a rental payment within 90 days of the due date, or if you fail to observe any other term in this Agreement, all of which are material, you will be in default and this Agreement terminates. If you default, and after we give you any notice required by law, we will be entitled to all legal remedies, including repossession of the instrument and or damages. You must pay us for all reasonable costs of collection and court costs. Upon default, all of your rental credit will be void, and you will be liable for any amounts due us and the immediate return of the instrument. Star Music has your permission to collect all money owed on contract, including the full price of the instrument, late charges, finance charges, and repossession fees. Star Music may also report your credit and payment history to any of the credit reporting agencies at our option. Star Music has the right to turn the account over to an outside collection agency. If the account is turned over to another agency Star Music will no longer be able, by law, to negotiate the account.

8 TERMINATION. You may terminate this Agreement at any time after the first school year (9 Month Term), without penalty, as long as all payments are current, by returning the instrument to a Star Music location in good condition, fair wear and tear excepted. You may return the instrument at any time during the first school year if the student is no longer in the music program, as verified by the music teacher. All original issue accessories such as strings, mouthpieces, drum pads, sticks, instrument parts, or bows must be returned with the instrument, or you must pay for them at the time of return. DO NOT LEAVE THE INSTRUMENT AT SCHOOL WITHOUT PROPER ADVANCE AUTHORIZATION FROM STAR MUSIC. If you are uncertain as to how to return your instrument, please call (803) 252-8133 for instructions. Monthly payments will not be prorated and there is no grace period.

9 BILLING AND CHANGE OF ADDRESS. Star Music Co. does not send bills or statements unless the account is past due. You will receive past due statements at the billing address listed. You must inform us in writing of any address changes. All rental payments are due in advance. There are no refunds on rental payments. NOTE: You are responsible for your monthly payments even if you do not receive a bill. Errors in the billing process and with the postal service may occur. Rental fees are not contingent on practice or lesson schedules, or time in the repair shop.

10 INSTRUMENT LOCATION. You must not move the instrument from the address shown in this Agreement without our consent. You must not sell, pawn, dispose of or pledge the instrument as security while this Agreement is in effect. NOTE: Do not return the instrument to the school if you wish to cancel this Agreement. You remain liable under this Agreement unless you have received a return receipt from us. Your school is not party to this transaction.

11 CREDIT REPORT. You agree to allow us to obtain a personal credit report at any time during this Agreement.

12. TAXES. Applicable state and local taxes are in addition to our prices and rates.

13. SECURITY DEPOSIT. We can use a security deposit on any outstanding balance under this Agreement at our option when this Agreement terminates. You are still required to make monthly rental payments for as long as this Agreement is in effect. Upon satisfactory return of the instrument, we will refund the deposit to you within 45 days of the actual return date, less any amounts you owe us. Unless required by law, we do not keep your security deposit in a separate account, and it does not bear interest.

14. TITLE TO THE INSTRUMENT. Star Music owns the instrument until you make all rental and other payments required under this Agreement or exercise your early purchase option. If you declare bankruptcy, we retain title, and the instrument must be returned to us immediately. You do not have the right to keep the instrument if you do not make all of the payments necessary for ownership. You are not required to purchase F&T or CMC from us. By signing this Agreement, you accept all liability for making timely rental payments under this Agreement as well as for the condition of the instrument until it has been returned to us or you have purchased it. No change of customer/lessee will be allowed.

15 AUTHORIZATION OF CHARGE CARD OR DEBIT CARD. You authorize us to bill against the credit card accounts listed, or communicated to us. If your rental account becomes more than 10 days past due, Star Music has your permission to collect all past due rent, late charges, and/or interest applicable to bring your account current. Star Music is not responsible for any charges resulting from overdrafts on customers’ bank accounts.

16. We reserve the right to make corrections which might be necessary due to mathematical errors caused by our systems or staff. You are entitled to a full accounting at any time and upon request.