---
kind: "section"
citation: "12 C.F.R. § 1013.5"
title: "12"
number: "1013.5"
heading: "Renegotiations, extensions, and assumptions."
url: "https://uscodex.org/cfr/12/1013.5"
---

# §1013.5. Renegotiations, extensions, and assumptions.

- (a) **Renegotiation.** A renegotiation occurs when a consumer lease subject to this part is satisfied and replaced by a new lease undertaken by the same consumer. A renegotiation requires new disclosures, except as provided in [paragraph (d)](#d) of this section.
- (b) **Extension.** An extension is a continuation, agreed to by the lessor and the lessee, of an existing consumer lease beyond the originally scheduled end of the lease term, except when the continuation is the result of a renegotiation. An extension that exceeds six months requires new disclosures, except as provided in [paragraph (d)](#d) of this section.
- (c) **Assumption.** New disclosures are not required when a consumer lease is assumed by another person, whether or not the lessor charges an assumption fee.
- (d) **Exceptions.** New disclosures are not required for the following, even if they meet the definition of a renegotiation or an extension:
  - (1) A reduction in the rent charge;
  - (2) The deferment of one or more payments, whether or not a fee is charged;
  - (3) The extension of a lease for not more than six months on a month-to-month basis or otherwise;
  - (4) A substitution of leased property with property that has a substantially equivalent or greater economic value, provided no other lease terms are changed;
  - (5) The addition, deletion, or substitution of leased property in a multiple-item lease, provided the average periodic payment does not change by more than 25 percent; or
  - (6) **An agreement resulting from a court proceeding.**

## Notes

### Authority

Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 1100E, 124 Stat. 1376.

### Source

Source: 76 FR 78502, Dec. 19, 2011, unless otherwise noted.