| Last Action | signed by Governor (Acts ch. 96) |
|---|---|
| Title | AN ACT relating to motor vehicle liens. |
| Bill Documents |
Bill
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| Bill Request Number | 1700 |
| Sponsor | J. Greer |
| Summary of Original Version | Amend KRS 190.090 to amend the definition of "retail installment sale" to exempt agricultural vehicles; to amend the definition of "retail installment contract" to include a bailment or lease with an option to become the owner of the motor vehicle for a nominal or no additional consideration beyond the contract; amend the definition of "cash sale price" to include charges for goods or services related to the sale and a any processing fee; and to define "maintenance agreement" ,"service contract", "Truth in Lending Act, "United States Rule", and "vehicle protection product; amend KRS 190.100 to provide that a retail installment contract need not appear on a single page and authorize agreements that appear after the buyer's signature including on the back or on subsequent pages; delete the requirement that a retail installment contract which includes title to or a lien on a motor vehicle shall not include accessories, special, or auxiliary equipment; delete the provision that a retail installment contract determined by a pre-computed method authorizes collection of a delinquency and collection charge; adjust the permissible delinquency and collection charge on an installment in arrears for a period of ten (10) or more days to the greater of five percent (5%) of each installment or fifteen dollars ($15), and authorize reasonable attorneys' fees; require that the retail installment contract contain any separately itemized items in the cash price; provide that a retail installment contract is in compliance with the contract requirements of this act if it satisfies the requirements of the Truth in Lending Act which apply to a retail installment contact regardless of whether the Act applies to the subject sale; amend KRS 190.110 to authorize a finance charge for a retail installment sale that is precomputed by using an add-on method subject to maximum charges based on the motor vehicle class; provide that a precomputed installment sale contract which provides for successive monthly payments of substantially equal amounts shall be prorated for a partial year based on the number of months in the partial year; provide that a precomputed finance charge applicable to a retail installment sale shall be at the maximum finance rate of the finance charge; alternatively the interest on a retail installment sale may be on a simple interest basis taking into account the number of days between payments using a fixed or variable rate subject to the maximum allowed by a precomputed add-on method; provide that the effective rate of a finance charge permitted by the precomputed add-on method shall be the rate computed in accordance with the actuarial method or the United State Rule; amend KRS 190.120 to provide that a refund of the finance charge for prepayment in full of a contract determined by a precomputed method shall not be less than the refund computed pursuant to the Rule of 78's. |
| Index Headings of Original Version |
Liens - Motor vehicles, retail installment contracts, requirements Motor Vehicles - Retail installment contracts, terms and interest computation requirements, establish Banks and Financial Institutions - Retail installment contract, motor vehicles, interest computation methods |
| Proposed Amendments | House Committee Substitute 1 |
| Votes | Vote History |
| 02/16/12 |
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| 02/21/12 |
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| 02/24/12 |
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| 02/29/12 |
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| 03/01/12 |
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| 03/05/12 |
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| 03/06/12 |
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| 03/08/12 |
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| 03/26/12 |
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| 03/27/12 |
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| 03/28/12 |
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| 03/30/12 |
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| 04/11/12 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions; add and amend KRS 304.5-070 to cross reference KRS 190.090 to 190.140 in the automobile guaranty section of the casualty insurance provision. |
| Index Headings |
Liens - Motor vehicles, retail installment contracts, requirements Motor Vehicles - Retail installment contracts, terms and interest computation requirements, establish Banks and Financial Institutions - Retail installment contract, motor vehicles, interest computation methods |
Last updated: 8/27/2019 8:05 PM (EDT)