PRINTER'S NO. 3008
No. 2357 Session of 1992
INTRODUCED BY SAURMAN, CLARK, CLYMER, ARMSTRONG, GALLEN,
SCHULER, TIGUE, KING, TRELLO, GLADECK, CARLSON, FARGO,
BARLEY, HERSHEY, GEIST, LEH, WOGAN, CORNELL, STETLER, SEMMEL,
VAN HORNE, PETRONE, STAIRS, NAHILL AND CIVERA,
JANUARY 29, 1992
REFERRED TO COMMITTEE ON TRANSPORTATION, JANUARY 29, 1992
AN ACT
1 Amending the act of June 28, 1947 (P.L.1110, No.476), entitled
2 "An act defining and regulating certain installment sales of
3 motor vehicles; prescribing the conditions under which such
4 sales may be made and regulating the financing thereof;
5 regulating and licensing persons engaged in the business of
6 making or financing such sales; prescribing the form,
7 contents and effect of instruments used in connection with
8 such sales and the financing thereof; prescribing certain
9 rights and obligations of buyers, sellers, persons financing
10 such sales and others; limiting incidental charges in
11 connection with such instruments and fixing maximum interest
12 rates for delinquencies, extensions and loans; regulating
13 insurance in connection with such sales; regulating
14 repossessions, redemptions, resales and deficiency judgments
15 and the rights of parties with respect thereto; authorizing
16 extensions, loans and forbearances related to such sales;
17 authorizing investigations and examinations of persons
18 engaged in the business of making or financing such sales;
19 prescribing penalties and repealing certain acts," further
20 providing for contracts.
21 The General Assembly of the Commonwealth of Pennsylvania
22 hereby enacts as follows:
23 Section 1. Subsection F of section 13 of the act of June 28,
24 1947 (P.L.1110, No.476), known as the Motor Vehicle Sales
25 Finance Act, amended April 4, 1990 (P.L.110, No.25), is amended
1 to read:
2 Section 13. Requirements as to Contracts.--
3 * * *
4 F. Every installment sale contract shall provide for payment
5 of the time balance in substantially equal periods and in
6 substantially equal amounts[: Provided, That when the buyer
7 expects his income to vary because of seasonal employment,
8 seasonal sales, use of accelerated depreciation for tax purposes
9 or other known cause, the contract may provide for payment of
10 the time balance in amounts which vary with such expected
11 varying income. An installment sale contract for the sale of a
12 heavy commercial motor vehicle shall be exempt from the
13 requirement that payments must be for substantially equal
14 periods and in substantially equal amounts. An installment sale
15 of a new motor vehicle to a bona fide salesman or of motor
16 vehicles to be used by him principally as a demonstrator shall
17 be exempt from the equal payment schedule requirement of this
18 section.] except in the following cases:
19 1. In cases where the buyer expects his income to vary
20 because of seasonal employment, seasonal sales, use of
21 accelerated depreciation for tax purposes or other known cause,
22 the contract may provide for payment of the time balance in
23 amounts which vary with such expected varying income.
24 2. In cases of an installment sale contract for the sale of
25 a heavy commercial motor vehicle.
26 3. In cases of an installment sale of a new motor vehicle to
27 a bona fide salesman or of motor vehicles to be used by him
28 principally as a demonstrator.
29 4. In cases where the buyer has expressly waived in writing
30 the equal payment schedule requirement of this section provided
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1 the installment lender has made all applicable written
2 disclosures required by the Truth in Lending Act (Public Law 90-
3 321, 15 U.S.C. § 1601 et seq.) and regulations promulgated
4 thereunder.
5 Section 2. This act shall take effect immediately.
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