§ 6235. Effect of license expiration, surrender and revocation on contracts.

217 words·~1 min read·/pa/title-12/chapter-62/6235

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

(a)Effect.-- The expiration, surrender or revocation of a license issued under this chapter to an installment seller or sales finance company does not impair or affect the obligation under an installment sale contract entered into lawfully or lawfully acquired by the licensee prior to the effective date of the expiration, surrender or revocation of the license.

(b)Charges by holder prohibited.-- A holder of an installment sale contract forfeits the right to charge, contract for, receive or collect refinance charges authorized by this chapter for renewal of the contract, if the holder's license has expired, was surrendered or was revoked prior to the date of the renewal.

(c)Sale, transfer and assignment of contracts.-- A licensee whose license has expired, was surrendered or was revoked may sell, transfer or assign contracts entered into or acquired prior to the expiration, surrender or revocation to a licensed sales finance company, which may renew the contracts in accordance with the provisions of this chapter.

(d)Prohibitions regarding contracts.-- A licensee whose license has expired, was surrendered or was revoked may not:

(1)enter into new contracts for the retail sale of motor vehicles under installment sale contracts; or

(2)discount, purchase or otherwise acquire the new contracts.

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