Pennsylvania Act 1992-55 — MOTOR VEHICLE SALES FINANCE ACT - AMEND INSTALLMENT CONTRACT

Act text

MOTOR VEHICLE SALES FINANCE ACT - AMEND INSTALLMENT CONTRACT
                  Act of Jun. 18, 1992, P.L. 307, No. 55              Cl. 12
                             Session of 1992
                               No. 1992-55

     SB 1606

                                  AN ACT

     Amending the act of June 28, 1947 (P.L.1110, No.476), entitled
        "An act defining and regulating certain installment sales of
        motor vehicles; prescribing the conditions under which such
        sales may be made and regulating the financing thereof;
        regulating and licensing persons engaged in the business of
        making or financing such sales; prescribing the form,
        contents and effect of instruments used in connection with
        such sales and the financing thereof; prescribing certain
        rights and obligations of buyers, sellers, persons financing
        such sales and others; limiting incidental charges in
        connection with such instruments and fixing maximum interest
        rates for delinquencies, extensions and loans; regulating
        insurance in connection with such sales; regulating
        repossessions, redemptions, resales and deficiency judgments
        and the rights of parties with respect thereto; authorizing
        extensions, loans and forbearances related to such sales;
        authorizing investigations and examinations of persons
        engaged in the business of making or financing such sales;
        prescribing penalties and repealing certain acts," further
        providing for installment sale contract requirements.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Subsection F of section 13 of the act of June 28,
     1947 (P.L.1110, No.476), known as the Motor Vehicle Sales
     Finance Act, amended April 4, 1990 (P.L.110, No.25), is amended
     to read:
        Section 13.  Requirements as to Contracts.--
        * * *
        F.  Every installment sale contract shall provide for payment
     of the time balance in substantially equal periods and in
     substantially equal amounts[: Provided, That when] except:
        1.  When the buyer expects his income to vary because of
     seasonal employment, seasonal sales, use of accelerated
     depreciation for tax purposes or other known cause, the contract
     may provide for payment of the time balance in amounts which
     vary with such expected varying income.
        2.  An installment sale contract for the sale of a heavy
     commercial motor vehicle shall be exempt from the requirement
     that payments must be for substantially equal periods and in
     substantially equal amounts.
        3.  An installment sale of a new motor vehicle to a bona fide
     salesman or of motor vehicles to be used by him principally as a
     demonstrator shall be exempt from the equal payment schedule
     requirement of this section.
        4.  Where the installment sale contract provides for fixed
     residual value financing. As used in this clause, "fixed
     residual value financing" shall mean the manner of purchase
     whereby a buyer who is listed as the owner on the title of the
     vehicle agrees to select and perform, at the conclusion of a
     predetermined schedule of installment payments made in
     substantially equal periods and in substantially equal amounts,
     one of the following options:
        (a)  satisfy the balance of the contractual amount owing;
        (b)  refinance any balance owing on the terms previously
     agreed upon at the time of executing the installment sale
     contract; or
        (c)  surrender the motor vehicle at such time and manner
     agreed upon at the time of executing the installment sale
     contract.
        Section 2.  This act shall take effect in 60 days.

     APPROVED--The 18th day of June, A. D. 1992.

     ROBERT P. CASEY