1. (a) An advertisement that promotes a consumer lease and contains the amount of any payment; or a statement of any capitalized cost reduction or other payment or that no payment is required prior to or at consummation or by delivery, if delivery occurs after consummation, must clearly and conspicuously include the following:

   1. (1) that the transaction advertised is a lease;
   2. (2) the total amount due prior to or at consummation or by delivery, if delivery occurs after consummation;
   3. (3) the number, amounts, and due dates or periods of scheduled payments under the lease;
   4. (4) a statement of whether or not a security deposit is required; and
   5. (5) a statement that an extra charge may be imposed at the end of the lease term where the lessee's liability, if any, is based on the difference between the residual value of the leased property and its realized value at the end of the lease term.
2. (b) Except for a periodic payment, a reference to a charge as described in subsection (a)(2) of this section, i.e., to components of the total due at lease signing or delivery, cannot be more prominently advertised than the disclosure of the total amount due at lease signing or delivery.

3. (c) If a percentage rate is advertised, that rate shall not be more prominent than any of the following disclosures stated in the advertisement, with the exception of paragraph (19) of this subsection, the notice required to accompany the rate.

   1. (1) Description of payments.
   2. (2) Amount due at lease signing or delivery.
   3. (3) Payment schedule and total amount of periodic payments.
   4. (4) Other itemized charges that are not included in the periodic payment. These charges include the amount of any liability that lease imposes upon the lessee at the end of the lease term.
   5. (5) Total of payments.

   6. (6) Payment calculation:

      1. (A) Gross capitalized cost.
      2. (B) Capitalized cost reduction.
      3. (C) Adjusted capitalized cost.
      4. (D) Residual value.
      5. (E) Depreciation and any amortized amounts.
      6. (F) Rent charge.
      7. (G) Total of base periodic payments.
      8. (H) Lease term.
      9. (I) Base periodic payment.
      10. (J) Itemization of other charges that are a part of the periodic payment.
      11. (K) Total periodic payment.
   7. (7) Early termination conditions and disclosure of charges.
   8. (8) Maintenance responsibilities.
   9. (9) Purchase option.
   10. (10) Statement referencing nonsegregated disclosures.
   11. (11) Liability between residual and realized values.
   12. (12) Right of appraisal.
   13. (13) Liability at the end of the lease term based on residual value.
   14. (14) Fees and taxes.
   15. (15) Insurance.
   16. (16) Warranties or guarantees.
   17. (17) Penalties and other charges for delinquency.
   18. (18) Security interest.
   19. (19) Limitations on rate information.
4. (d) If a lessor provides a percentage rate in an advertisement, a notice stating that "this percentage may not measure the overall cost of financing this lease" shall accompany the rate disclosure. The lessor shall not use the term "annual percentage rate," "annual lease rate," or any equivalent term.
5. (e) A multi-page advertisement that provides a table or schedule of the required disclosures is considered a single advertisement if, for lease terms that appear without all of the required disclosures, the advertisement refers to the page or pages on which the table or schedule appears.
6. (f) A merchandise tag stating any item listed in subsection (a) of this section, must comply with the disclosures in subsection (a) of this section by referring to a sign or display prominently posted in the lessor's place of business that contains a table or schedule of the required disclosures.

7. (g) An advertisement made through television or radio stating any item listed in subsection (a) of this section, must state in the advertisement:

   1. (1) that the transaction advertised is a lease;
   2. (2) the total amount due prior to or at consummation or by delivery, if delivery occurs after consummation;
   3. (3) the number, amounts, and due dates or periods of scheduled payments under the lease; and

   4. (4) Either:

      1. (A) a toll-free telephone number along with a reference that such number may be used by consumers to obtain the information in subsection (a) of this section. The toll-free telephone number shall be available for no fewer than ten days, beginning on the date of the broadcast and the lessor shall provide the information in subsection (a) of this section orally or in writing upon request; or
      2. (B) direct the consumer to a written advertisement in a publication of general circulation in the community served by the media station, including the name and the date of the publication, with a statement that the required disclosures in subsection (a) of this section are included in the advertisement. The written advertisement shall be published beginning at least three days before and ending at least 10 days after the broadcast.

Source Note:The provisions of this §215.264 adopted to be effective February 11, 2010, 35 TexReg 883.