Chapter 2

COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES CHAPTER 2 CREDIT SALES Article 1. General Provisions. Article 2. Finance Charges. Article 3. Disclosure. Article 4. Limitations On Agreements And Practices. Article 5. Home S olicitation Sales. Article 6. Sales Other Than Consumer Credit Sales. ARTICLE 1 GENERAL PROVISIONS § 2101. Short Title. § 2102. Scope. § 2103. Index of Definitions. § 2104. Definition: Consumer Credit Sale. § 2105. Same: Goods; Merchandise Certificate; Services; Sale of Goods; Sale of Services; Sale of an Interest in Land; Precomputed . § 2106. Same: Consumer Lease. § 2107. Same: Transferee. § 2108. Same: Revolving Charge Account. § 2109. Same: Credit Service Charge. § 2110. Same: Cash Price. § 2111. Same: Amount Financed. § 2101. Short Title. This Article shall be known and may be ci ted as Uniform Consumer Credit Code --Credit Sales. § 2102. Scope. This Article applies to con sumer credit sales, including home solicitation sales, and consumer leases; in addition Part F [Article 6] applies to credit sales other than consumer credit sales. § 2103. Index of Definitions.

con sumer credit sales, including home solicitation sales, and consumer leases; in addition Part F [Article 6] applies to credit sales other than consumer credit sales. § 2103. Index of Definitions. The following definitions apply to this Act and appear in this Article as follows: Amount financed § 2111 COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES Cash price § 2110 Consumer lease § 2106 Consumer credit sale § 2104 Credit servic e charge § 2109 Goods § 2105(1) Home solicitation sale § 2501 Merchandise certificate § 2105(2) Precomputed § 2105(7) Revolving charge account § 2108 Sale of goods § 2105(4) Sale of an inter est in land § 2105(6) Sale of services § 2105(3) Transfer ee § 2107 § 2104. Definition: Consumer Credit Sale. (1) Consumer credit sale is a transaction in which: (a) a sale of goods, services or an inter est in land is ma de and in which credit is granted b y a seller who regularly engages in credit transactions as a seller; (b) the buyer is a person other than an organization; and (c) the goods, services or interest in land are pur chased primarily for a personal, family , household or agricultural purpose.

as a seller; (b) the buyer is a person other than an organization; and (c) the goods, services or interest in land are pur chased primarily for a personal, family , household or agricultural purpose. (2) Consumer credit sale does not include: (a) a sale in which the seller allows the buyer to purchase goods or services pursuant to a credit card or similar arrangement; or (b) a sale of an interest in land if the credit service charge, however calculat ed, does not exceed ten percent (10%) per year calculated on the unpaid balances of the amount financed according to the United States rule. For the purpose of calculating the rate of the cr edit service charge, non -periodic charges made at the inception ofthesale which are included in the credit service charge shall be COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES amortized over the term of the sale agreement notwith standing that the debt is paid prior to the end of the agreed term and charges for the privilege of prepay ing the debt shall not be in cluded in the credit service charge. § 2105. Sam e: Goods; Merchandise Certificate; Services; Sale of Goods; Sale of Services; Sale of an Interest in Land; Precom puted.

ing the debt shall not be in cluded in the credit service charge. § 2105. Sam e: Goods; Merchandise Certificate; Services; Sale of Goods; Sale of Services; Sale of an Interest in Land; Precom puted. (1)Goods include goods not yet in existence at the time the transaction is entered into and merchandise certificates, but excludes money , chattel paper, documents of title and instru ments. (2) Merchandise certificate means a writing issued by a seller not redeemable in cash and to be used in its face amount in lieu of cash in exchange for goods for services. (3)Services includes (a) work, labor and other personal services, and (b) privileges with respect to transportation, hotel and restaurant accommodations, education, entertainment, recre ation, physical culture, hospital accommodati ons, funerals, cemetery accommodations, and the like. Ser vice does not include insurance. (4) Sale of goods includes a bailment or lease of goods which is intended as a means whereby the bailee or lessee will ultimately become the owner of the goods. A bailment or lease under which the bailee or lessee has the privilege to purchase or retain the goods for no additional consideration or for a nominal

will ultimately become the owner of the goods. A bailment or lease under which the bailee or lessee has the privilege to purchase or retain the goods for no additional consideration or for a nominal consideration is one so intended but a sale on approval is not. (5) Sale of services means furnishing or agre eing to furnish services and includes making arrangements to have services furnished by another . (6) Sale of an interest in land includes a lease in which the lessee has an option to pur chase an interest in land and the rental or other payments previously made by him are applied in a substantial part to the purchase price. (7) A sale, refinancing or consolidation is precomputed if the debt is expressed as a sum comprising the amount financed and the amount of the credit service charge computed in advance. § 2106. Same: Consumer Lease. (1) Consumer lease means a lease of goods which a lessor, regularly engaged in the business of leasing, makes to a person, other than an or -COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES ganization, who is taking under the lease pri marily for a personal, family , house hold or agricultural purpose.

erson, other than an or -COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES ganization, who is taking under the lease pri marily for a personal, family , house hold or agricultural purpose. (2) Consumer lease does not include a lease in which the lessor allows the lessee to lease goods pursuant to a credit card or similar arrangement. § 2107. Same: T ransferee. Transferee means an assignee of the right to paymen t of a seller or lessor arising out of a consumer credit sale or a consumer lease, other than a person who takes an assignment in bulk as security for a loan. § 2108. Same: Revolving Charge Account. Revolving charge account means an arrangement between a seller and a buyer pursuant to which (1) the seller may permit the buyer to purchase from the seller or an affiliate goods or services on credit, (2) the debts arising from purchases, credit service charges and other service charges will be debited to an account, (3) a credit service charge may be computed from time to time on the basis of the balances of the buyer's account, and (4) the buyer will have the privi lege of paying the balances in install ments. § 2109. Same: Credit Service Charge.

omputed from time to time on the basis of the balances of the buyer's account, and (4) the buyer will have the privi lege of paying the balances in install ments. § 2109. Same: Credit Service Charge. Credit service charg e mea ns the total of (1) the time price differ ential or other charge, however denominated, which is paid or payable, directly or indirectly , to or for the account of the seller or his transferee, or to a person related to or designated by him, by the buyer of goods, services or an interest in land for the privilege of paying for the goods, services or an interest in land over a period of time, and (2) charges incurred for investigating the collateral or credit -worthiness of the buyer or for com missions or brokerage for obtaining the credit, irrespec tive of the person to whom they are paid or payable, unless the seller had no notice of the charges at the time the credit was granted. It does not include charges as a result of de fault, additiona l charges (§ 2202), delinquency charges (§ 2203), and deferral charges (§ 2204). § 2110. Sam e: Cash Price. Thecash price of goods, services or an interest in land means the price at which the goods, services or

2202), delinquency charges (§ 2203), and deferral charges (§ 2204). § 2110. Sam e: Cash Price. Thecash price of goods, services or an interest in land means the price at which the goods, services or interest in land are offered for sale by the seller to cash buyers in the ordinary course of business, and may include (1) applicable sales, use and excise and documen tary stamp COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES taxes, (2) the cash price of accessories or related services such as delivery , installation, servicing, repairs, alter ations and improve ments, and (3) amounts actual ly paid or to be paid by the seller for registration, certificate of title or license fees. The cash price stated by the seller to the buyer pursuant to the provisions on disclosure (Article 3) of this Chap ter is presumed to be the case price. § 2111. Same: Amount Financed. Amount financed means the total of (1) the case price of the goods, services or interest in land less the amount of any down payment whether made in cash or in property traded in, (2) the amount actually paid or to be paid by the seller pursu ant to an agreement with the buyer to discharge a security interest in

f any down payment whether made in cash or in property traded in, (2) the amount actually paid or to be paid by the seller pursu ant to an agreement with the buyer to discharge a security interest in or a lien on property traded in, (3) any applicable sales, use or excise and documen tary stamp taxes if not included in the c aseprice, (4) amounts actually paid or to be paid by the seller for registration, certificate of title or license fees if not included in the cash price, and (5) additional charges permitted by this Article (§ 2202). ---------- ARTICLE 2 FINANCE CHARGE S § 2201. Credit Service Charge for Consumer Credit Sales Other Than Revolving Charge Accounts. § 2202. Additional Charges. § 2203. Delinquency Charges. § 2204. Deferral Charges. § 2205. Credit Service Charge: Refinancing. § 2206. Same: Consolidation. § 2207. Same: Revolving Charge Accounts. § 2208. Advances to Perform Covenants of Buyer . § 2209. Right to Prepay . § 2210. Rebate Upon Prepayment. § 2211. Filed Rates Excluded. § 2201. Credit Service Charge for Consumer Credit Sales Other Than Revolving Charg e Accounts.COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES (1) With respect to a consumer

tes Excluded. § 2201. Credit Service Charge for Consumer Credit Sales Other Than Revolving Charg e Accounts.COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES (1) With respect to a consumer credit sale, other than a sale pursuant to a revolv ing charge account, the parties to the sale agree ment ma y contract for the payment by the buyer of an amount compris ing the amount financed and a credit serv ice charge not in excess of that permitted by this Section. So long as the credit service charge does not exceed the equivalent of that permitted by this Section, it may be calcu - lated by way of discount, monthly or annual dollars -per-one-hundred - dollars a dd-on, monthly or annual percentage rate, or otherwise. (2) The credit service charge may not exceed the greater of either of the following: (a) the total of (i) thirty -six percent (36%) per year, calculated according to the United States rule on that part of the unpaid balances of the amount financed which is Three Hun dred Dollars ($300.00), or less; (ii) twenty -one percent (21%) per year, calculated according to the United States rule on that part of the unpaid balances of the amount financed which is m ore than

dred Dollars ($300.00), or less; (ii) twenty -one percent (21%) per year, calculated according to the United States rule on that part of the unpaid balances of the amount financed which is m ore than Three Hundred Dollars ($300.00) but does not exceed One Thousand Dollars ($1,000.00); and (iii) fifteen percent (15%) per year, calculated according to the United States rule on that part of the unpaid balances of the amount financial which is mo rethan One Thousand Dollars ($1,000.00); or (b) twenty -four percent (24%) per year . (3) For the purposes of this Section, the term of a sale agreement shall be calculated in terms of calendar months beginning with the date the cr edit is granted or, if go ods are delivered or services performed a week or mor e after that date, beginning on the date of delivery or performance. Differences in the lengths of months are disregarded. Fractions of a month are treated as a full month if more than fifteen (15) days, and if fifteen (15) days or less, are disregarded. If a sale agreement is for a period greater than or less than year, the charges stated in Paragraph (a) of Subsection (2) shall be calculated propor tionally .

een (15) days or less, are disregarded. If a sale agreement is for a period greater than or less than year, the charges stated in Paragraph (a) of Subsection (2) shall be calculated propor tionally . (4) A seller may make the same credit service charge on all amounts financed within a specified range. In this case the amount financed for COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES the purpose of Subsection (2) is the median amount of the range within which the actual amount financed is included. A charge may be ma de pursuant to this Subsec tion only if the same credit service charge is made for all amounts financed within the specified range and if the charge on the media n am ount financed is no more than eight percent (8%) greater than the charge that would have been made on the actual amoun t financed pursuant to Subsection (2). (5) The seller may contract for and receive the minimum credit service charge permitted by this Subsection if the credit service charge calculated pursuant to this Section is less than the minimum credit service charg e. The minimum credit ser vice charge is the greater of either Ten D ollars ($10.00) or an amount, not in excess of T

calculated pursuant to this Section is less than the minimum credit service charg e. The minimum credit ser vice charge is the greater of either Ten D ollars ($10.00) or an amount, not in excess of T wenty -Five Dollars ($25.00), which is five percent (5%) of the amount financed. (6) The amounts of Three Hundred Dollars ($300.00) and One Thousand Dollars ($1,000.00) in Subsection (2) and the amounts of Ten Dollars ($10.00) and Twenty -Five Dollars ($25.00) in Subsection (5) are subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106). SOURCE : § 2201: subsection ( 2)(b) amended by P .L. 16 -32.1 § 2202. Additional Charges. (1) In addition to the credit service charge permitted by this Article, the parties to the sale agreement may contract for the payment by the buyer of the following additional charges in connectio n with a consumer credit sale: (a) official fees; (b) charges for insurance; and (c) charges for other benefits conferred on the buyer, if the benefits are of value to him apart from the granting of the credit and the charges are reasonable in relation to the benefits.

rance; and (c) charges for other benefits conferred on the buyer, if the benefits are of value to him apart from the granting of the credit and the charges are reasonable in relation to the benefits. (2) The Administrator may adopt rules deter mining whether charges areadditional charges pursuant to paragraph (c) of subsection (1). § 2203. Delinquency Charges. (1) With r espect to a consum ercredit sale other than a sale pursuant toa revolving charge account, the parties to a sale or refinancing agreement may contract for a delinquency charge on any install ment not COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES paid in full within 10 days after its scheduled due date in an amount not to exceed the gr eater of: (a) T wo Dollars ( $2.00) or an amount, not exceeding Five Dollars $5.00, which is five percent 5% of the unpaid amount of the installment; or (b) the deferral charge that would be permitted by Subsection (1) of § 2204 to defer the unpaid amount of the installment for the period that it is delinquent. (2) A delin quency charge under paragraph (a) of sub section (1) may be collected only once on an installment however long it remains in default.

the installment for the period that it is delinquent. (2) A delin quency charge under paragraph (a) of sub section (1) may be collected only once on an installment however long it remains in default. No delinquency charge ma ybe collect ed if the installment has been deferred and a deferral charge has been paid in accordance with § 2204. A delin- quency charge may be collect ed at the time is assessed or at any time thereafter . (3) No delinquency charge may be collected on an installment which is paid in full within 10 days after a scheduled install ment due date even though an earlier matur ing installment or a delinquency charge on it may not have been paid in full. (4) The amounts of Two Dollars ($2.00) and Five Dollars ($5.00) in subsection (1) are subject to change pursuant to p rovisions on adjust ment of dollar amounts (§ 1106). § 2204. Deferral Charges. (1) With respect to a consumer credit sale other than one pursu ant to a revolving charge account, the parties may before or after default agree in writing to defer payment o f all or part of one or more unpaid install - ments, and the seller or his trans feree ma y ma ke a charge not in excess of eight een percent (18%)

r after default agree in writing to defer payment o f all or part of one or more unpaid install - ments, and the seller or his trans feree ma y ma ke a charge not in excess of eight een percent (18%) per year of the amount deferred for the period of deferment (and pro portion ally for parts of a month, counting each day as one-thirtieth (1/30) of a month). A deferral charge may be collected at the time it is assessed or at any time thereafter . If the defer ral charge calculated pursuant to this subsection is less than $2, a deferral charge of $2 may nevertheless bemade. (2) The seller or his transferee may , in addition to the deferral charge, ma ke appropriate additional charges listed in § 2202, and the amount of these charges which is not paid in cash may be added to the amount deferred for the purpose of calc ulating the deferral charge. (3) The parties may agree in writing at the time of a consumer credit sale or refinancing agreement that if an installment is not paid within ten COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES 10 days after its due date, the seller or his transferee may unilaterally grant a defer ment and make charges as provided in this

thin ten COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES 10 days after its due date, the seller or his transferee may unilaterally grant a defer ment and make charges as provided in this section. No deferral charge may be made for a period after the date that the seller or his transferee elects to accelerate the maturity of the agreement. (4) No delinquency charge may be made or retained b y the seller or his transferee for the period of deferral of any install ment which is deferred pursuant to this section. (5) The amounts of Two Dollars ($2.00) in subsection (1) are subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106). § 2205. Credit Service Charge: Refinancing. With respect to a consumer credit sale other than one pursuant to a revolv ing charge account, the seller or his transferee may by agree ment with the buyer refinance the unpaid balance and may contract for and receive a credit service charge based on the amount financed resulting from the refinancing at a rate not in excess of that permitted by the provisions on credit service charge for consumer credit sales (§ 2201).

dit service charge based on the amount financed resulting from the refinancing at a rate not in excess of that permitted by the provisions on credit service charge for consumer credit sales (§ 2201). For the purpose of determi ning the credit service charge permitted, the amount financed resulting from the refinancing comprises the follow ing: (1) the amount which the buyer would have been required to pay upon prepayment pursuant to the provi sions on rebate upon prepayment (§2210) on the date of refinanc ing, except that for the purpose of computing this amount the minimum credit service charge that may be retained pursuant to § 2210(1) shall not be included; and (2) appropriate additional charges made pursuant to § 2202 but not paid in cash by the buyer . § 2206. Same: Consolidation. (1) This Sec tion applies to a transaction involving a consum er credit sale other than one pursuant to a revolving charge account. (2) If a buyer has an unpaid balance owing to seller or his t ransferee with respect to a previous consumer credit sale to a previous Consumer Credit Sale and he enters into a subse quent consumer credit sale with the same seller, the parties may agree to a

s t ransferee with respect to a previous consumer credit sale to a previous Consumer Credit Sale and he enters into a subse quent consumer credit sale with the same seller, the parties may agree to a consolidation resulting in a single schedule of payments pur suant to either Subsections (a) or (b): (a) The parties may agree to refinance the unpaid balance with COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES respect to the previous sale pursuant to the provisions on refinancing § 2205) and to consolidate the amount financed resulting from the refinancing by adding it to the amount financed with r espect to the subsequent sale. The seller or his transferee may contract for and receive a credit service charge based on the aggregate amount financed resulting from the consolida tion at a rate not in excess of tha t permitted by the provisions on credit service charge for consumer credit sales § 2201); (b) The parties may agree to consolidate by adding together the unpaid balances with respect to the two sales. § 2207. Same: Revolving Charge Accounts. (1) With res pect to a consumer credit sale made pursuant to a revolving charge account, the parties to the sale may

d balances with respect to the two sales. § 2207. Same: Revolving Charge Accounts. (1) With res pect to a consumer credit sale made pursuant to a revolving charge account, the parties to the sale may contract for the payment by the buyer of a credit service charge not in excess of that permitted in this section. (2) A charge ma y be ma de in each bill ing cycle which is a percentage of an amount no greater than: (a) the average daily balance of the account; (b) the unpaid balance of the account on approxi mately the same day of the billing cycle; or (c) the median amount within a specified range with in which the average daily balance or the unpaid balance of the account, approx imately the same day of the billing cycle, is included. A charge ma y be ma de pursu ant to this paragraph only if the same percentage is applied to all balances within the speci fied range and if the charge calculated on the median amount pursuant to this para - graph is no mor e than eight percent 8% greater than the charge that would have been calculated on the actual daily average balance on unpaid balances pursuant to paragraph ( a) or (b).

o this para - graph is no mor e than eight percent 8% greater than the charge that would have been calculated on the actual daily average balance on unpaid balances pursuant to paragraph ( a) or (b). (3) If the billing cycle is monthly , the charge may not exceed two percent 2% of that part of the amount pursuant to subsection (2) which is Five Hundred ($500.00) or less and one and one -half percent 1 2% on that part of this amount which is mo rethan Five Hundred Dollars ($500.00). If the billing cycle is not monthly , the maximum charge is that percentage which bears the same relation to the applicable monthly percentage as the number of days in the billing cycle bears to thirty (30). COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES For the p urposes of this section, a variation of not more than four (4) days fr om month to month is approximate ly the same day of the billing cycle. (4) If there is an unpaid balance on the date as of which the credit service charge is applied and the credit serv ice charge pursuant to this section is less than the minimum charge, a minimum charge not exceeding seventy cents ($0.70) may be made if the billing cycle is monthly , or, if

lied and the credit serv ice charge pursuant to this section is less than the minimum charge, a minimum charge not exceeding seventy cents ($0.70) may be made if the billing cycle is monthly , or, if the billing cycle is not monthly , a m inimum charge which bears the same relation t o seventy cents ($0.70) as the number of days in the billing cycle bears to thirty (30) may be made. (5) The amounts of Seventy Cents ($0.70) in subsection (4) are subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106). § 2208. Advances to perform Covenants of Buyer . (1) If the agreement with respect to a consumer credit sale or a refinanc ing contains covenants by the buyer to perform certain duties pertaining to insuring or preserving collateral and if the seller or his transferee pursuant to the agreement pays for perfor mance of the duties on behalf of the buyer he may add the amounts paid to the debt. W ithin a reasonable time after advancing any sums, he shall state to the buyer the amount of the sums advanced, any char ges with respect to this amount, and the r evised payment schedule. No further information need be given.

ter advancing any sums, he shall state to the buyer the amount of the sums advanced, any char ges with respect to this amount, and the r evised payment schedule. No further information need be given. (2) A credit service charge may be made for sums ad vanced pursuant to subsection (1) at a rate not in excess of the rate of return yielded by the cre dit service charge under the sale or refinancing agreement, except that with respect to a revolv ing charge account the amount of the advance may be added to the unpaid balance of the account and the seller may make a credit service charge not in excess of that permitted by the provisions on credit service charge for revolving charge accounts (§ 2207). § 2209. Right to Prepay . The buyer may prepay in full the unpaid balance of a consumer credit sale of goods or services at any time without penalty . § 221 0. Rebate Upon Prepayment. (1) Upon pr epayment in full of the unpaid balance of a precomputed consumer credit sale or a refinanc ing or consolidation thereof, the COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES unearned por tion of the credit service charge shall be rebated to the buyer.

credit sale or a refinanc ing or consolidation thereof, the COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES unearned por tion of the credit service charge shall be rebated to the buyer. If the earned portion of the credit service charge is an amount less than the amount of the minimum credit service charge (§ 2201(6)), the seller or transferee may retain an amount equal to the minimum credit service charge. If the required rebate is less than $1.00, no rebateneed b e made. (2) The unearned credit service charge is a fraction of the credit service charge of which the numerator is the sum of the periodic balanc es scheduled to follow the computational period in which repayment occurs, and the denominator is the sum of all periodic balances under either the sale agreement or, if the balance owing resulted from a refinancing agreement (§ 2205) or a consolidation agreement (§ 2206), under the refinancing agreement or consolidation agreement. (3) In this sec tion: (a) periodic balance means the amount scheduled to be outstanding on the last day of a computational period before deducting the payment, if any , scheduled to be made on that day; (b) computational period means

balance means the amount scheduled to be outstanding on the last day of a computational period before deducting the payment, if any , scheduled to be made on that day; (b) computational period means one (1) month if one -half (1/2) or mo reof the inter vals between scheduled payments under the agreement is one month or more and shall otherwise mean one (1) week, except that the total interval prior to the due date of the first scheduled instalment shall always be considered one computatio nal period. (4) (a) If the computational period is one (1) month: (i) and the number of days between the date of sale, refi nancing or consolidation (or any later date established under § 2201(3)) and the due date of the first scheduled installment is les s than 25 days or more than 35 days but not more than 45 days, the unearned credit service charge shall be increased by an adjustment for each day b y which the interval is less than 30 days and, at the option of the seller or his transfer ee, ma y be r educe d by an adjustment for each day by which the interval is more than 30 days; the adjustment for each day shall be one -thirtieth (1/30th) of that part of the credit service charge earned in

be r educe d by an adjustment for each day by which the interval is more than 30 days; the adjustment for each day shall be one -thirtieth (1/30th) of that part of the credit service charge earned in the computa tional period prior to the due date of the first schedul ed installment assuming that period to be one month; (ii) and the interval between the date of the sale, refinancing or consolidation and the final scheduled payment date is a number of COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES full months plus an addi tional number of days less than a full month, the addition al number of days shall be considered a computational period only if 16 days or more. (b) If the computational period is one (1) week: (i) and the number of days between the date of sale, refi nancing or consolidation (or any later date esta blished under Subsec tion (3) § 2201) and the due date of the first scheduled installment is less than five (5) days or more than nine (9) days but not more than eleven (11) days, the unearned credit service charge shall be increased by an adjustment for e ach day by which the interval is less than seven (7) days and, at the option of the seller or his

e than eleven (11) days, the unearned credit service charge shall be increased by an adjustment for e ach day by which the interval is less than seven (7) days and, at the option of the seller or his transferee, may b e reduced by an adjustment for each day by which the interval is more than seven (7) days; the adjustment for each day shall be one - seventh ( 1/7th) of that part of the credit service charge earned in the compu tational period prior to the due date of the first scheduled installment assuming that period to be one (1) month; (ii) and the interval between the date of the sale, refinancing or conso lidation and the final scheduled payment date is a number of full weeks plus an addi tional number of days less than a full week, the additional number of days shall be consid ered a computational period only if four (4) days or more. (5) If a deferral has been agreed to pursuant to § 2204, the unearned credit service charge shall be computed without regard to the defer ment. The a mount of deferment charge earned at the date of prepayment shall be calculated. If the deferment charge earned is less than the defer ment charge paid, the difference shall be added to the amount

e a mount of deferment charge earned at the date of prepayment shall be calculated. If the deferment charge earned is less than the defer ment charge paid, the difference shall be added to the amount of the unearned credit service charge. If any part of a deferment charge has been earned but has not been paid, that part shall be subtracted from any rebate of credit service charge other wise due, or shall be added to the unpaid balance. (6) This Section does not preclude the collec tion or reten tion by the seller or his transferee of delinquency charges made as authorized by § 2203. (7) If the maturity is accelerated for any reason and j udgment is obtained, the buyer is entitled to the same rebate as though payment were made on the date judgment is enter ed. (8) If the buyer dies before the maturity of the agreement and the COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES unpaid balance is paid by the proceeds of credit insurance on the life of the buyer, the estate of the buyer is entitled to the same rebate as though the buyer had pre paid the agreement on the date the proceeds of the credit insurance are paid to the creditor, but no later than ten (10) days after

he buyer is entitled to the same rebate as though the buyer had pre paid the agreement on the date the proceeds of the credit insurance are paid to the creditor, but no later than ten (10) days after proof of death is furn ished to the creditor . § 221 1. Filed Rates Excluded. This Article does not apply to sales with respect to which rates of credit service charge, however denomi nated, are filed with and subject to approval or disapproval by an instrumentality or agency of this Territo ry or of the United States. ---------- ARTICLE 3 DISCLOSURE [Repealed by P .L. 16 -73.] ---------- ARTICLE 4 LIMIT ATIONS ON AGREEMENTS AND PRACTICES § 2401. Exclusions. § 2402. Use of Multiple Agr eements to Obtain Higher Rate. § 2403. Negoti able Promissory Notes Prohibited. § 2404. Transfer ee Not Subject to Defenses Against Seller if Proper Notice of Transfer Given to Buyer . § 2405. Balloon Payments. § 2406. Restriction on Liability in Consumer Lease. § 2407. Restrictions on Security in Sales or Leases. § 2408. Cross -Collateral. § 2409. Debt Secured by Cross -Collateral. § 2410. No Assignment of Earnings. § 2411. Referral Sales. § 2412. Notice of Transfer. § 2413. Attor neys' Fees. § 2414.

Leases. § 2408. Cross -Collateral. § 2409. Debt Secured by Cross -Collateral. § 2410. No Assignment of Earnings. § 2411. Referral Sales. § 2412. Notice of Transfer. § 2413. Attor neys' Fees. § 2414. Limitation on Default Charges.COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES § 2415. Confession of Judgment. § 2401. Exclusions. (1) This Article does not apply: (a) to sales in which the amount financed is Twenty -Five Thousand Dollars ($25,000.00) or more or to leases in which the amount payable under the lease is Twenty -Five Thousand Dollars ($25,000.00) or more; or (b) To sales of an interest in la nd. (2) The amount of Twenty -Five Thousand Dollars ($25,000.00) in Subsection (1) are sub ject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106). § 2402. Use of Multiple Agreements to Obtain Higher Rate. No seller may divide a consumer credit sale with the intent of obtaining a higher rate of credit service charge than would other wise b e permitted by this Chapter . The excess amount of credit service charge provided for in agreements in violation of this section are excess charges for the purposes of the provi sions on the effect of

permitted by this Chapter . The excess amount of credit service charge provided for in agreements in violation of this section are excess charges for the purposes of the provi sions on the effect of violations on rights of parties (§ 5201) and the provisions on civil actions by Administrator (§ 6113). § 2403. Negotiable Promissory Notes Pro hibit ed. In a consumer credit sale or consumer lease other than a sale or lease primarily for an agricultural purpose, the seller or lessor may not take a negotiable promissory note payable in install ments as evidence of the obligation of the buyer or lessee. A promissory note negotiable in form issued in violation of this section may be enforced as a negotiable instrument by a holder in due course according to its terms. The holder in due course is not subject to the liabili ties set forth in the provi sions on the effect of violations on the rights of parties (§ 5201) and the provisions on civil actions by Administrator (§ 6113). § 2404. T ransferee Not Subject to Defenses Against Seller if Proper Notice Of T ransfer Given to Buyer . (1) With respect to a consumer credit sale or lease, other than a sale or lease primarily for an

404. T ransferee Not Subject to Defenses Against Seller if Proper Notice Of T ransfer Given to Buyer . (1) With respect to a consumer credit sale or lease, other than a sale or lease primarily for an agricultural purpose, an agree ment by the buyer or lessee not to assert against a transferee a claim or defense arising out of the sale or lease is enforceable only by a transfer ee not related to the COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES seller or lessor who acquires the buyer's or lessee's contract in good faith and for value, who gives the buyer or lessee notice of the transfer as provided in this section and who, within six months after the mailing of the notice of transfer, receives no written notice of the facts giving rise to the buyer's or lessee's claim or defense. The notice of transfer shall be in writing and addressed to the buyer or lessee at his address as stated in the contract, identify the contract, des cribe the goods or services, state the name a nd address of the transferee, the amount payable by the buyer or lessee and the number, amounts and due dates of the install ments, and contain a conspic uous notice to the buyer or lessee that he

a nd address of the transferee, the amount payable by the buyer or lessee and the number, amounts and due dates of the install ments, and contain a conspic uous notice to the buyer or lessee that he has six months within which to notify the transferee in writing of any complaints, claims or defenses he may have against the seller or lessor and that if written notification of the complaints, claims or defenses is not given within the six-month period, the transferee will have the right to enforce the contract free of any claims or de fenses the buyer or lessee may have against the seller or lessor . (2) A transferee does not acquire a buyer's or lessee's contract in good faith within the meaning of subsection (1) if thetransferee has knowledge or, from his course of dealing with the seller or lessor or his records, notice of substantial complaints by other buyers or lessees of the seller's or lessor's failure or refusal to perform his contracts with them and of the s eller's or lessor's failure to remedy his defaults within a reasonable time after the transferee notifies him of the com plaints. § 2405. Balloon Payments .

rform his contracts with them and of the s eller's or lessor's failure to remedy his defaults within a reasonable time after the transferee notifies him of the com plaints. § 2405. Balloon Payments . With respect to a consumer credit sale, other than one primarily for an agricultural purpose or o ne pursuant to a revolving charge account, if any payment, other than the first, is more than twice as large as the average of the other payments, the buyer has the right to refinance the amount of that payment at the time it is due without penalty or othe r charge. The terms of the refinancing shall be no less favorable to the buyer than the terms of the original sale. This limitation does not apply to the extent that the schedule of pay ments is adjusted to the seasonal or irregular income of the buyer . §2406. Restriction on Liability in Consumer Lease. A consumer lease, other than one pri marily for an agricultural purpose, may not provide that a lessee who has otherwise per formed his obligations under the lease shall be liable for an amount upon COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES termination of the lease in excess of twice the average periodic payment under

igations under the lease shall be liable for an amount upon COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES termination of the lease in excess of twice the average periodic payment under the lease. An agr eement in violation of this subsection is void. § 2407. Restriction on Security in Sales or Leases. (1) W ith respect to a consumer credit sale, a seller may take a security interest in the goods sold, in goods installed in or affixed to the goods sold, and in property to which the goods are affixed. The seller may also take a security interest in property of the buyer to secure the debt arising from a consumer cre dit sale primarily for an agricultural purpose. Except as provided with respect to cross -collateral (§ 2408), a seller may not other wise take a security interest in property of the buyer to secure the debt arising from a consumer credit sale unless the sal e involves maintenance, repair or improve ment of the buyer's property . In this case a seller may take a security interest in the property affected, if in the case of a security interest in real property the debt secured is Five Hundred Dollars ($500.00), or mor e, or, in the case of a security

y take a security interest in the property affected, if in the case of a security interest in real property the debt secured is Five Hundred Dollars ($500.00), or mor e, or, in the case of a security interest in personal property the debt secured is One Hundred Fifty Dollars ($150.00) or more. (2) With respect to a consumer lease, a lessor may not take a security interest in property of the lessee to secure the d ebt arising from the lease. (3) A security interest taken in violation of this section is void. (4) The amounts of Five Hundred Dollars ($500.00) and One Hundred Fifty Dollars ($150.00) in subsection (1) are subject to change pursuant to the provisions o n adjustment of dollar amounts (§ 1106). § 2408. Cross -Collateral. (1) In addition to contracting for a security interest in the goods sold, a seller of goods in a consumer credit sale may secure the debt arising from the sale by: (a) contracting for a security interest in goods previ ously sold to the buyer by the seller if there is an existing security interest in the goods held either by the seller or his transferee; and (b) contracting at the time of a subse quent sale to the buyer for a security in terest in the

if there is an existing security interest in the goods held either by the seller or his transferee; and (b) contracting at the time of a subse quent sale to the buyer for a security in terest in the goods sold in the subsequent sale as security for the previous debt. (2) The security interest described in sub sections (a) and (b) ceases COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES when the debt arising from the original sale of the collateral to the debtor has been paid. § 2409. Debt Secured by Cross -Collateral. (1) Except as provided in subsections (2) and (3), if debts arising from two or more consumer credit sales, other than sales primarily for an agricultural purpose, are consolidated into one debt payable on a single sched uleof payments, and the consolidated debt is secured by security interests in goods sold in one or more of the sales, payments received by the seller or his transferee after consolidation are deemed, for the purpose of determining the amount of the debt s ecured by the various security interests, to have been first applied to the payment of debts arising from the sales first made.

ion are deemed, for the purpose of determining the amount of the debt s ecured by the various security interests, to have been first applied to the payment of debts arising from the sales first made. (2) If goods sold are affixed to or installed in goods previously sold, and the debts arising from each sale are consolidated, the debts from each sale are treated as a single debt arising at the time of the subsequent sale. (3) If the debts consolidated arose from two (2) or more sales made on the same day , pay ments received by the seller or his transferee after consolidation a redeemed, for the purpose of determining the amount of the debt secured by the various security interests, to have been first applied to the payment of the smallest or smaller of the debts. § 2410. No Assignment of Earnings. A seller or lessor may not take an assignment or earnings of the buyer or lessee as security for payment of a debt arising out of a consumer credit sale or a consumer lease. If goods or services are given as consideration for a sale of unpaid earnings, the transaction is deemed to be a cr edit sale of the goods or services secured by an assignment of earnings.

mer lease. If goods or services are given as consideration for a sale of unpaid earnings, the transaction is deemed to be a cr edit sale of the goods or services secured by an assignment of earnings. An assignment of earnings in violation of this section is void. § 241 1. Referral Sales. With respect to a consumer credit sale or consumer lease the seller or lessor may not give or offer to give a rebate or discount or otherwise pay or offer to give a rebate of discount or otherwise pay or offer to pay value to the buyer or lessee in consideration of his giving to the seller or lessor the names of prospective purchasers or le ssees, or otherwise aiding the seller or lessor in making a sale or lease to another person, if the earning of the rebate, discount or other value is contingent upon the COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES occurrence of an event subsequent to the time the buyer or lessee agrees to buy or lea se. § 2412. Notice of T ransfer . The buyer or lessee is autho rized to pay the seller or lessor until the buyer or lessee receives notification of transfer of the rights to payment pursuant to a consumer credit sale or consumer lease and that

or lessee is autho rized to pay the seller or lessor until the buyer or lessee receives notification of transfer of the rights to payment pursuant to a consumer credit sale or consumer lease and that payment is to be made to the transferee. A notification which does not reasonably identify the rights transferred is ineffec tive. If request ed by the buyer or lessee, the transferee must seasonably furnish reasonable proof that the transfer has been made and unless he does so the buyer or lessee may pay the seller or lessor . § 2413. Attorneys’ Fees. With respect to a consumer credit sale or consumer lease the agreement may provide for the recovery from the buyer or lessee of reasonable attorneys' fees not in exce ss of fifteen percent 15% of the unpaid debt at the time suit is brought, if paid or payable to an attorney not a salaried employee of the seller or lessor or his transferee. An agreement in violation of this Section is void. § 2414. Limitation on Default Charges . Except for reason able expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit sale may not provide for any charges as a result of default by the buyer other than

reason able expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit sale may not provide for any charges as a result of default by the buyer other than those authorized by this Act. An a greement in violation of this Section is void. § 2415. Confession of Judgment. A buyer or lessee may not give a power of attorney to any person to confess judg ment on a claim arising out of a consumer credit sale or consumer lease. A power of attorney given in violation of this Section is void. ---------- ARTICLE 5 HOME SOLICIT ATION SALES [Repealed by P .L. 16 -73.]COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES ----------- ARTICLE 6 SALES OTHER THAN CONSUMER CREDIT SALES § 2601. Sales Subject to Act by Agreement of Parties. § 2602. Service Charge for Certain Sales to Individuals. § 2603. Applicability of Other Provisions. § 2604. Limitation on Default Charges. § 2605. Credit Service Charge for Other Sales. § 2601. Sales Subject to Act by Agreement of Parties. The parties to a sale other than a co nsumer credit sale may agree in a writing signed by the parties that the sale is subject to the provisions of this Act applying to consumer

Agreement of Parties. The parties to a sale other than a co nsumer credit sale may agree in a writing signed by the parties that the sale is subject to the provisions of this Act applying to consumer credit sales. If the parties so agree the sale is a consumer credit sale for the purposes of this Act. § 2602. Serv ice Charge for Certain Sales to Individuals. (1) W ith respect to a sale other than a consumer credit sale, the parties ma y contract for the payment by the buyer of a credit service charge not in excess of that permitted by this Section if: (a) the credit is granted by a seller who regularly engages in credit transactions as a seller; (b) the amount financed is Twenty -Five Thousand Dollars ($25,000.00), or less; and (c) the buyer is either (i) a person other than an organization or (ii) an organization i f the debt is secured primarily by a security interest in a one (1) or two (2) family dwell ing occupied by a person related to the organization. (2) With r espect to a sale other than one pursuant to a revolving charge account, the parties may contract for the payment by the buyer of an amount comprising the amount financed and a credit service charge not in excess of

e other than one pursuant to a revolving charge account, the parties may contract for the payment by the buyer of an amount comprising the amount financed and a credit service charge not in excess of twenty -four percent (24%) per year calculated on the unpaid balances of the amount financed according to the United States rule. (3) W ith res pect to a sale pursuant to a revolving charge account the parties ma y contract for the payment of a credit service charge not in COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.2CREDIT SALES excess of that permitted by § 2207. (4) The amount of Twenty -Five Thousand Dollars ($25,000.00) in Subsection (1) is subject to change pursuant to the provisions on adjust - ment of dollar amounts (§ 1106). [Subsection (2) amended by P .L. 16 - 32.] § 2603. Applicability of Other Provisions. Except for the rate of the credit service charge, the provisions of Article 2 of this Chapter apply to a sale for which credit service charge ceilings are set by § 2602 (certain sales to individuals). § 2604. Limitation on Default Charges. The agr eement with respect to a sale for which credit service charge ceilings are set by § 2602 (certain s ales to individuals)

(certain sales to individuals). § 2604. Limitation on Default Charges. The agr eement with respect to a sale for which credit service charge ceilings are set by § 2602 (certain s ales to individuals) may not provide for any charges as a result of default by the buyer except for reasonable attorneys' fees and reason able expenses incurred in realizing on a security interest, and charges that could have been made had the sale been a consumer credit sale. An agr eement in violation of this Section is void. § 2605. Credit Service Charge for Other Sales. With respect to a sale other than a consumer credit sale or a sale described in Subsection (1) of § 2602 (certain sales to individ uals), the parties ma y contract for the payment by the buyer of credit service charge agr eed to in writing. ----------