31A-6b-303. Cancellation or termination of a guaranteed asset protection waiver.

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

(a)A borrower may cancel a guaranteed asset protection waiver in accordance with this section.

(b)A borrower may not waive by contract the borrower's right to cancel a guaranteed asset protection waiver in accordance with this section.

(c)A guaranteed asset protection waiver terminates on the day on which the related finance agreement terminates.

(a)A guaranteed asset protection waiver shall provide for a preliminary period of at least 30 days.

(b)If a borrower cancels a guaranteed asset protection waiver or if a guaranteed asset protection waiver terminates within the preliminary period, the borrower is entitled to a refund of the charge for the guaranteed asset protection waiver as follows:

(i)if benefits have not been provided, a full refund; or

(ii)if benefits have been provided, a refund to the extent provided for in the guaranteed asset protection waiver.

(a)If a guaranteed asset protection waiver is cancelled by the borrower or terminates after the preliminary period, to obtain a refund of any portion of the charge for the guaranteed asset protection waiver, the borrower shall request the refund:

(i)in a writing provided to:

(A)the creditor;

(B)an administrator; or

(C)another person designated in the guaranteed asset protection waiver;

(ii)within 90 days of the day on which an event occurs that terminates the finance agreement if the refund is sought on the basis of termination of a finance agreement; and

(iii)in accordance with any additional terms in the guaranteed asset protection waiver.

(b)If a guaranteed asset protection waiver is cancelled by the borrower or terminates after the preliminary period, but before the term of the finance agreement ends, a borrower is entitled to a refund:

(i)of the portion of the charge for the guaranteed asset protection waiver that under the terms of the guaranteed asset protection waiver is considered unearned; and

(ii)subject to any other terms of the guaranteed asset protection waiver.

(a)If the cancellation of a guaranteed asset protection waiver occurs as a result of any of the following, a refund may be paid directly to the creditor or administrator and applied as provided in Subsection (4)(b) :

(i)a default under the finance agreement;

(ii)the repossession of the vehicle associated with the finance agreement; or

(iii)any other type of termination of the finance agreement or guaranteed asset protection waiver.

(b)A creditor may apply a refund described in this Subsection

(4)to reduce the amount owed under a finance agreement, unless the borrower can show that the finance agreement is paid in full.

Enacted by Chapter 274 , 2010 General Session