190.100 Retail installment contract.
1,052 words·~5 min read·
/ky/chapter-190/190-100A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Every retail installment contract shall:
1. Be in writing in at least eight
(8)point type;
2. Contain all the agreements of the parties;
3. Be signed by the retail buyer; and
4. Require a copy thereof to be furnished to the retail buyer at the time of
the execution of the contract.
(b)A retail installment contract need not appear on a single page and a contract
that includes a provision incorporating agreements that appear after the
buyer's signature, including without limitation, terms, and conditions on the
back or on subsequent pages, shall be deemed in compliance with KRS
446.060(1).
(c)No provisions for confession of judgment, power of attorney therefor, or wage
assignment contained in any retail installment contract shall be valid or
enforceable.
(d)1. The holder of a retail installment contract may collect a delinquency and
collection charge in an amount not in excess of five percent (5%) of
each installment or fifteen dollars ($15), whichever is greater, for each
installment in arrears for a period not less than:
a. Three
(3)days for installment periods that are less than twenty-
eight
(28)days; or
b. Ten
(10)days for installment periods that are twenty-eight
days or longer.
2. In addition to such delinquency and collection charge, the retail
installment contract may provide for the payment of reasonable
attorneys' fees where such contract is referred to an attorney not a
salaried employee of the holder of the contract for collection, plus the
court costs.
(e)Unless notice has been given to the retail buyer of actual or intended
assignment of a retail installment contract, payment thereunder or tender
thereof made by the retail buyer to the last known holder of such contract
shall be binding upon all subsequent holders or assignees.
(f)Upon written request from the retail buyer, the holder of the retail installment
contract shall give or forward to the retail buyer a written statement of the
total amount unpaid under such contract. A retail buyer shall be given a
written receipt for any payment when made in cash.
(2)The retail installment contract shall contain the following:
(a)The cash sale price of the motor vehicle which is the subject matter of the
retail installment sale;
(b)The amount of the retail buyer's down payment, whether made in money or
goods, or partly in money or partly in goods;
(c)The difference between paragraphs
(a)and
(b)of this subsection;
(d)1. Amount, if any, included for insurance and other benefits; and
2. Types of coverage and benefits;
(e)Official fees as defined in KRS 190.090;
(f)Any amounts eligible for inclusion in the cash sale price as defined in KRS
190.090 that the seller elects to separately itemize; and
(g)Principal balance, which is the sum of paragraphs (c), (d), and
(e)of this
subsection.
(3)A retail installment contract is deemed in compliance with subsection
(2)of this
section if it satisfies the requirements of the Truth in Lending Act that would apply
to a retail installment contract within the Truth in Lending Act's scope, regardless
of whether the Truth in Lending Act would apply to the retail installment sale at
issue.
(4)The amount, if any, included for insurance, shall not exceed the premiums
chargeable in accordance with applicable rate filings made with the commissioner
of insurance. Every retail seller or sales finance company, if insurance on the motor
vehicle is included in a retail installment contract shall within thirty
(30)days after
execution of the retail installment contract send or cause to be sent to the retail
buyer a policy or policies or certificate of insurance, which insurance shall be
written by a company authorized to do business in this state, clearly setting forth the
amount of the premium, the kind or kinds of insurance and the scope of the
coverage and all the terms, exceptions, limitations, restrictions and conditions of the
contract or contracts of the insurance. The buyer of a motor vehicle under a retail
installment contract shall have the privilege of purchasing such insurance from an
agent or broker of his own selection and of selecting an insurance company
acceptable to the seller; provided, however, that the inclusion of the insurance
premium in the retail installment contract when the buyer selects the agent, broker
or company, shall be optional with the seller. If any such policy is canceled, the
unearned insurance premium refund received by the holder of the contract shall be
credited to the final maturing installments of the retail installment contract. For
purposes of this subsection, single interest insurance insuring the retail seller or
sales finance company shall not be considered insurance on the motor vehicle.
Neither a copy of the policy nor a certificate of insurance of this type of insurance
shall be sent to the retail buyer.
(5)Any sales finance company hereunder may purchase or acquire from any retail
seller any retail installment contract on such terms and conditions as may be agreed
upon between them. No filing of the assignment, no notice to the retail buyer of the
assignment, and no requirement that the retail seller shall be deprived of dominion
over the payments thereunder or the goods covered thereby if repossessed by the
retail seller shall be necessary to the validity of a written assignment of a retail
installment contract as against creditors, subsequent purchasers, pledgees,
mortgagees, and lien claimants of the retail seller.
(6)An acknowledgment in the body of the retail installment contract by the retail buyer
of the delivery of a copy thereof shall be conclusive proof of delivery in any action
or proceeding by or against any assignee of a retail installment contract.
(a)A "debt cancellation agreement" is a written provision in a retail installment
contract, or separate addendum thereto, which provides for cancellation of all
or part of an obligation of the buyer or obligor upon the occurrence of a
specified event.
(b)In accordance with subsection (2)(d) of this section, a debt cancellation
agreement shall be itemized by type on the retail installment contract and
considered an "other benefit" for which the seller, sales finance company, or
other holder may charge the buyer or obligor.
(c)A debt cancellation agreement shall not be considered a contract of, or for,
insurance.