407.2030. Definitions.

307 words·~1 min read·/mo/chapter-407/407-2030

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407.2030. Definitions. — For purposes of sections 407.2030 to 407.2055 , the following terms mean:

(1)"Administrator" , any person, other than an insurer or creditor, who performs administrative or operational functions for debt waiver programs;

(2)"Borrower" , a debtor or retail buyer or lessee under a finance agreement;

(3)"Creditor" :

(a)The lender in a loan or credit transaction;

(b)The lessor in a lease transaction;

(c)Any retail seller of motor vehicles;

(d)The seller in commercial retail installment transactions; or

(e)The assignee of any person described in paragraphs

(a)to

(d)of this subdivision to whom the credit obligation is payable;

(4)"Debt waiver" , any guaranteed asset protection waiver or excess wear and use waiver;

(5)"Excess wear and use waiver" , a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a motor vehicle, which agreement shall be part of, or a separate addendum to, the lease agreement. Excess wear and use waivers may also cancel or waive amounts due for excess mileage;

(6)"Guaranteed asset protection waiver" , a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement shall be part of, or a separate addendum to, the finance agreement. A guaranteed asset protection waiver may also provide, with or without a separate charge, a benefit that waives an amount, or provides a borrower with a credit, toward the purchase of a replacement motor vehicle.

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(L. 2023 S.B. 398)