§ 6228. Prohibited provisions.

449 words·~2 min read·/pa/title-12/chapter-62/6228

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

An installment sale contract may not contain any of the following:

(1)Blank spaces to be filled in after the contract has been signed, except regarding serial numbers or other identifying marks that are not available for description of the motor vehicle at the time of execution of the contract.

(2)An acceleration clause under which all or part of the time balance represented by payments not yet matured may be declared immediately payable because the installment seller or holder deems itself to be insecure. This paragraph does not apply to an acceleration clause authorizing the seller or holder to declare the entire time balance due and payable in case of any of the following:

(i)The buyer's default in the payment of one or more installment payments.

(ii)The buyer's failure to pay taxes levied against the motor vehicle.

(iii)The buyer's failure to furnish proof of payment of taxes levied against the motor vehicle.

(iv)Use of the motor vehicle for illegal purposes.

(v)The buyer's filing for bankruptcy.

(vi)The buyer's default in the payment of a cross-collateralized obligation.

(vii)The buyer's intentionally providing fraudulent and misleading information on a credit application.

(3)A provision authorizing a person acting on behalf of the seller or holder to enter upon the premises of the buyer unlawfully or to commit a breach of the peace in the repossession of the motor vehicle or collateral security.

(4)A provision whereby the buyer waives a right of action against the seller, holder, collector-repossessor or other person acting on behalf of the holder for an illegal act committed in the collection of payments under the contract or in the repossession of the motor vehicle or collateral security.

(5)A provision whereby the buyer executes a power of attorney appointing the seller, the holder, a collector-repossessor or the agent of any of them as the buyer's agent in the collection of payments under the contract or in the repossession of the motor vehicle or collateral security. This paragraph does not apply to a power of attorney issued by the buyer to an attorney at law to be used only in the collection of the obligation by legal process.

(6)A provision relieving the holder or other assignee from liability for legal remedies that the buyer may have had against the seller under the contract or a separate instrument executed in connection with the contract.

(7)A provision requiring or entailing the execution of a note or series of notes by the buyer, which when separately negotiated will extinguish as to third parties a right of action or defense that the buyer may have against the original seller.

12c6229s