HB 417 (BR 1700) - J. Greer
AN ACT relating to motor vehicle liens.
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.
HB 417 - AMENDMENTS
HCS - 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.
Feb 16-introduced in House
Feb 21-to Banking & Insurance (H)
Feb 24-posted in committee
Feb 29-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 1-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, March 2, 2012
Mar 5-3rd reading, passed 92-0 with Committee Substitute
Mar 6-received in Senate
Mar 8-to Judiciary (S)
Mar 26-taken from Judiciary (S); 1st reading; returned to Judiciary (S)
Mar 27-taken from Judiciary (S); 2nd reading; recommitted to Banking & Insurance (S)
Mar 28-reported favorably, to Rules as a Consent Bill
Mar 30-posted for passage in the Consent Orders of the Day for Friday, March 30, 2012; 3rd reading, passed 37-0; received in House; enrolled, signed by each presiding officer; delivered to Governor
Apr 11-signed by Governor (Acts ch. 96)