THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY ROSS, BEYER, EVERETT, FRANKEL, GEIST, GIBBONS, GINGRICH, HENNESSEY, KILLION, MANN, MILLARD, MILLER, MILNE, MOUL, SCAVELLO AND SIPTROTH, FEBRUARY 18, 2009

REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 18, 2009  

AN ACT

Amending Title 12 (Commerce and Trade) of the Pennsylvania

Consolidated Statutes, codifying the provisions of the Motor

Vehicle Sales Finance Act and the Goods and Services

Installment Sales Act; making conforming amendments to Title

42; and making related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 12 of the Pennsylvania Consolidated

Statutes is amended by adding a part heading to read:

PART IV

ECONOMIC DEVELOPMENT AND FINANCING

Section 2.  Title 12 is amended by adding a part to read:

PART V

CONSUMER CREDIT

Chapter

61.  General Provisions

62.  Motor Vehicle Sales Finance

63.  Goods and Services Installment Sales

CHAPTER 61

GENERAL PROVISIONS

Sec.

6101.  Scope of part.

6102.  Definitions.

6103.  Contracts and agreements.

6104.  Electronic transactions.

§ 6101.  Scope of part.

This part relates to consumer credit.

§ 6102.  Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Banking of the Commonwealth.

"Financial institution."  A bank, bank and trust company,

trust company, savings bank, private bank, savings association

or credit union organized and doing business under the

provisions of any law of this Commonwealth, another state or the

United States.

"Records."  Books, accounts, papers, documents, files and

other similar business records and information, including

information that is:

(1)  stored in an electronic or other medium that uses

technology having electrical, digital, magnetic, wireless

optical, electromagnetic or similar capabilities; and

(2)  retrievable in perceivable form.

§ 6103.  Contracts and agreements.

(a)  General rule.--A contract or agreement under this part

shall be dated and in writing.

(b)  Clear and conspicuous provisions.--The headings, notices

and language of a contract or agreement under this part shall be

clear and conspicuous and meet the following requirements:

(1)  Except as otherwise provided in this subsection, the

language in a contract or agreement under this part shall be

in at least eight-point type.

(2)  A heading in a contract or agreement under this part

shall be in at least ten-point bold type.

(3)  A notice or disclosure in a contract or agreement

under this part shall be in at least ten-point bold type.

(4)  An acknowledgment under this part shall be in at

least ten-point bold type.

§ 6104.  Electronic transactions.

(a)  Effect on other law.--Nothing in this part shall be

construed to supersede the provisions of the act of December 16,

1999 (P.L.971, No.69), known as the Electronic Transactions Act.

(b)  Department procedures.--The department may establish

procedures for electronic transactions under this part,

including:

(1)  the filing of applications and renewals for licenses

and registrations;

(2)  the filing of reports and other required records;

and

(3)  the verification of records and signatures on forms.

CHAPTER 62

MOTOR VEHICLE SALES FINANCE

Subchapter

A.  General Provisions

B.  Licenses

C.  Installment Sale Contracts

D.  Costs and Charges

E.  Repossession

F.  Penalties and Liability

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

6201.  Scope of chapter.

6202.  Definitions.

6203.  Authority of department.

6204.  Records.

6205.  Appeals.

6206.  Deposit of fees and fines.

6207.  Distribution of information.

6208.  Venue.

6209.  Applicability.

6210.  Markups.

§ 6201.  Scope of chapter.

This chapter relates to motor vehicle sales finance.

§ 6202.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Buyer."

(1)  A person who buys, hires or leases a motor vehicle

under an installment sale contract or a legal successor in

interest to the person, even if the person may have entered

into an extension, deferment, renewal or other revision of

the contract.

(2)  The term includes a person who as surety, endorser,

guarantor or otherwise is liable on an obligation created by

a buyer under an installment sale contract.

"Collateral security."

(1)  Security, other than a security interest in a motor

vehicle, which is the subject of an installment sale contract

and given to secure performance of an obligation of a buyer

or the buyer's surety or guarantor under an installment sale

contract or an extension, deferment, renewal or other

revision of the contract.

(2)  The term includes the following:

(i)  The undertakings of a surety or guarantor for a

buyer.

(ii)  An interest in, encumbrance on or pledge of

real or personal property other than the motor vehicle

that is the subject of an installment sale contract.

"Collector-repossessor."

(1)  A person who, as an independent contractor and not

as a regular employee of an installment seller or a sales

finance company, collects payments on installment sale

contracts or repossesses motor vehicles that are the subject

of installment sale contracts.

(2)  The term excludes the following:

(i)  A duly constituted public official or an

attorney-at-law acting in an official capacity.

(ii)  A licensed seller or licensed sales finance

company making collections or repossessions on

installment sale contracts, if the seller or sales

finance company:

(A)  was previously a holder; or

(B)  was not a holder but occasionally makes

collections or repossessions for other licensed

sellers or licensed sales finance companies.

"Commercial purpose."  A purpose related to the production,

exhibition, marketing, transportation, processing or manufacture

of goods or services.

"Debt cancellation agreement."  A contractual arrangement in

which a person agrees to pay all or part of a buyer's obligation

to repay an extension of credit from a holder upon the

occurrence of a specified event.

"Debt suspension agreement."  A contractual arrangement in

which a person agrees to pay for a specific period of time all

or part of a buyer's obligation to repay an extension of credit

from a holder upon the occurrence of a specified event.

"Down payment."  Partial payments made in cash or otherwise

and received by or for the benefit of an installment seller

prior to or substantially contemporaneous with either the

execution of an installment sale contract or the delivery of the

items sold under the contract, whichever occurs later.

"Finance charge."  Either of the following:

(1)  The amount of the consideration in excess of the

purchase price, which a buyer is required to pay to an

installment seller for:

(i)  the privilege of purchasing a motor vehicle

under an installment sale contract; or

(ii)  the credit extended by the seller to the buyer

in conjunction with the sale of a motor vehicle under an

installment sale contract.

(2)  The difference between the cash sale price of the

motor vehicle and the time balance, exclusive of insurance

charges, late charges and other charges that are necessary or

incidental to an installment sale and specifically authorized

by this chapter to be included in an installment sale

contract.

"Heavy commercial motor vehicle."  A new or used motor

vehicle, excluding a recreational vehicle, that is:

(1)  a truck or truck tractor having a manufacturer's

gross vehicular weight of 13,000 pounds or more; or

(2)  a semitrailer or trailer designed for use in

combination with a truck or truck tractor.

"Holder."  An installment seller or a sales finance company

with the rights of the installment seller under the installment

sale contract.

"Installment sale contract."

(1)  A contract for the retail sale of a motor vehicle,

or a contract that has a similar purpose or effect, whether

or not the installment seller has retained a security

interest in the motor vehicle or has taken collateral

security for a buyer's obligation, if:

(i)  all or part of the purchase price is payable in

two or more scheduled payments subsequent to the making

of the contract; or

(ii)  a buyer undertakes to make two or more

scheduled payments or deposits that may be used to pay

all or part of the purchase price.

(2)  The term includes any form of contract, however

nominated, for the bailment or leasing of a motor vehicle,

which contains both of the following, or any other

arrangement having a similar purpose or effect:

(i)  The buyer contracts to pay as compensation a sum

substantially equivalent to or in excess of the value of

the motor vehicle.

(ii)  Ownership of the motor vehicle may be

transferred to the buyer.

(3)  The term includes and applies to an extension,

deferment, renewal or other revision of the installment sale

contract.

(4)  The term excludes the following:

(i)  A sale or contract for sale upon an open book

account, if both of the following conditions are met:

(A)  The installment seller has not retained or

taken a security interest in the motor vehicle sold

or a collateral security for the buyer's obligation.

(B)  The buyer:

(I)  is not required to pay a sum other than

the purchase price of the motor vehicle sold in

connection with the sale or extension of credit;

and

(II)  is obligated to pay for the motor

vehicle in full within 90 days from the time the

sale or contract for sale was made.

(ii)  A right to acquire possession of goods under a

lease, unless the lease:

(A)  constitutes a security interest as defined

in 13 Pa.C.S. § 1201 (relating to general

definitions); and

(B)  is subject to 13 Pa.C.S. Div. 9 (relating to

secured transactions).

"Installment seller."  A person engaged in the business of

selling, hiring or leasing a motor vehicle under an installment

sale contract or a legal successor in interest to the person.

"Insurance charges."  Premiums, commissions and other

payments authorized by insurance statutes or regulations of this

Commonwealth.

"Licensee."  A person who has been issued a license as an

installment seller, a sales finance company or a collector-

repossessor under this chapter, which license has not expired

and has not been surrendered or revoked.

"Manufactured home."  The term as it is defined under section

603(6) of the National Manufactured Housing Construction and

Safety Standards Act of 1974 (Public Law 93-383, 42 U.S.C. §

5402(6)).

"Motor vehicle."

(1)  A device in which, upon which or by which a person

or property is or may be transported or drawn upon a public

highway.

(2)  The term includes a trailer, semitrailer,

manufactured home and recreational vehicle.

(3)  The term excludes the following:

(i)  A tractor, a power shovel, road machinery,

agricultural machinery and other machinery not designed

primarily for highway transportation, but which may

incidentally transport persons or property on a public

highway.

(ii)  A device that moves upon or is guided by a

track or travels through the air.

"Principal amount financed."  The unpaid purchase price

balance plus the following:

(1)  The charges for any insurance required or obtained

as security for or by reason of the sale of a motor vehicle

under an installment sale contract.

(2)  Other costs or charges necessary or incidental to

the sale of the motor vehicle under an installment sale

contract.

(3)  Amounts representing payment of a prior credit or

lease balance to discharge a security interest, lien or lease

interest on a motor vehicle or other property traded or

returned.

"Purchase price."  The price measured in dollars at which an

installment seller would in good faith sell to a buyer, and the

buyer would in good faith buy from the seller, a motor vehicle

that is the subject matter of an installment sale contract, if

the sale were a cash sale instead of an installment sale.

"Recreational vehicle."  As defined in section 2 of the act

of December 22, 1983 (P.L.306, No.84), known as the Board of

Vehicles Act.

"Retail sale."  The sale of a motor vehicle for the buyer's

use or another's use from which the buyer derives a benefit or

satisfaction.

"Sales finance company."

(1)  A person engaged as principal, agent or broker in

the business of financing or soliciting the financing of an

installment sale contract made between other parties.

(2)  The term includes the following:

(i)  A person in the business of acquiring, investing

in or lending money or credit on the security of an

installment sale contract or any interest in the

contract, whether by discount, purchase or assignment of

the contract, or otherwise.

(ii)  An installment seller, whether or not licensed

under this chapter, who finances an installment sale

contract for another seller or a sales finance company.

(3)  The term excludes a person to the extent that the

person is exempt under section 6229(e) (relating to

transfer).

"Security interest."  A security interest as provided by 13

Pa.C.S. Div. 9 (relating to secured transactions).

"Service contract."  A written contract, optional on the part

of a buyer, to perform over a fixed period of time or for a

specified duration services regarding the maintenance or repair

of a motor vehicle.

"Time balance."  The sum of the principal amount financed and

the finance charge.

"Unpaid purchase price balance."  The difference between the

purchase price and the down payment.

"Warranty."

(1)  Either of the following, which becomes part of the

basis of the bargain between a buyer and an installment

seller for purposes other than resale:

(i)  A written declaration of fact or written promise

made in connection with the sale of a motor vehicle by an

installment seller or manufacturer to a buyer that

relates to the nature of the materials or workmanship

regarding the motor vehicle and affirms or promises that

the motor vehicle is free of defects or will meet a

specified level of performance over a specified period of

time.

(ii)  Any undertaking in writing in connection with

the sale of a motor vehicle by an installment seller or

manufacturer to refund, repair, replace or take other

remedial action with respect to the motor vehicle if the

motor vehicle fails to meet the specifications set forth

in the undertaking.

(2)  The term excludes a service contract and an extended

warranty with the characteristics of a service contract.

§ 6203.  Authority of department.

(a)  Powers.--The department has the authority to do any of

the following:

(1)  Investigate the business activities of a licensee

and person engaged in a business contemplated by this chapter

by the following means:

(i)  Examining the records of the licensee and

person.

(ii)  Accessing the offices and places of business of

the licensee and person and the records of the licensee

and person.

(2)  Examine the records, safes and vaults of a person

described under subsection (b)(2) for the purpose of

discovering violations of this chapter.

(3)  Require the attendance and testimony of witnesses

and the production of records relating to a business that the

department has the authority to investigate. For the purposes

of this subsection, a duly authorized representative of the

department may sign subpoenas, administer oaths and

affirmations, examine witnesses and receive evidence.

(4)  Prescribe the minimum information to be shown in the

records of a licensee so as to enable the department to

determine compliance with the provisions of this chapter.

(5)  Promulgate regulations and issue orders, statements

of policy and written interpretations as necessary or

appropriate for the interpretation or enforcement of this

chapter.

(6)  Reduce the amount of or prohibit entirely a cost

regarding the retaking, storing or repairing of a motor

vehicle under section 6256 (relating to buyer's liability for

costs) if the cost:

(i)  appears to be fictitious, unnecessary,

unreasonable or exorbitant; or

(ii)  would not have been incurred by a prudent

person under similar circumstances.

(7)  Adopt a statement of policy that contains guidelines

determining mark-ups that the department finds, after

reasonably considering relevant market data, not to be

excessive and update and revise the statement of policy to

reflect changing business conditions.

(b)  Applicability.--

(1)  This section applies whether the person acts or

claims to act as principal, agent or broker, either under or

without the authority of this chapter.

(2)  A person who is not licensed under this chapter is

presumed to be engaged in a business contemplated by this

chapter, if the person, as principal, agent or broker,

advertises or solicits business for which a license is

required by the provisions of this chapter.

(c)  Administration.--In the case of disobedience of a

subpoena or the noncooperation of a witness appearing before the

department, the department may invoke the aid of the courts, and

the court shall issue an order requiring the person subpoenaed

to obey the subpoena, give evidence or produce records relative

to the matter in question. Failure to obey the court order may

be punished by the court as contempt.

(d)  Expenses.--The expenses incurred by the department in

connection with an examination or investigation, including a

proportionate part of the salary of an examiner or other

employee of the department and counsel assigned by the

department, may be assessed by the department upon the

particular person examined or investigated.

§ 6204.  Records.

(a)  General rule.--A licensee shall maintain, at the place

of business designated in the license certificate, records of

the business conducted under the license issued for the place of

business so as to enable the department to determine whether the

licensee's business contemplated by this chapter is being

operated in accordance with the provisions of this chapter.

(b)  Multiple places of business.--A licensee operating two

or more licensed places of business in this Commonwealth may

maintain the general control records of all the offices at any

one of the offices, or at any other office maintained by the

licensee, upon the following:

(1)  The filing of a written request with the department

designating the office at which the control records are

maintained.

(2)  Approval of the request by the department.

(c)  English language.--Records of a licensee shall be

maintained in the English language.

(d)  Preservation.--Records of a licensee shall be preserved

and available for examination by the department for at least two

years after making the final entry therein.

§ 6205.  Appeals.

An appeal may be taken from the action of the department in

suspending and revoking a license under section 6218 (relating

to revocation or suspension of license) or imposing a civil

penalty under section 6274 (relating to civil penalty by

department) in accordance with the procedure prescribed by 2

Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to judicial

review of Commonwealth agency action).

§ 6206.  Deposit of fees and fines.

License fees and fines that are received by the department

under this chapter shall be deposited in the State Treasury to

the credit of a special fund for the use of the department in

administering this and other laws of this Commonwealth placed

under its administration.

§ 6207.  Distribution of information.

(a)  Department.--The department shall provide a copy of the

provisions of this chapter to each licensee in conjunction with

the licensee's initial license and all renewal applications.

(b)  Licensee.--

(1)  A licensee shall make the information under

subsection (a) available to its employees.

(2)  A copy of the information under subsection (a) shall

be kept at the licensee's place of business for inspection by

a buyer.

§ 6208.  Venue.

An action on an installment sale contract shall be commenced

in a county where any of the following occurred:

(1)  The buyer signed the contract.

(2)  The buyer resides at the commencement of the action.

(3)  The buyer resided when the contract was entered

into.

§ 6209.  Applicability.

(a)  Consumer discount companies.--The provisions of this

chapter do not affect or impair a business conducted lawfully

under a license issued under the act of April 8, 1937 (P.L.262,

No.66), known as the Consumer Discount Company Act.

(b)  Other extensions of credit.--The provisions of this

chapter do not apply to an extension of credit for the purchase

of a motor vehicle, including the financing of other costs or

charges necessary or incidental to the sale or financing of a

motor vehicle, made under the act of November 30, 1965 (P.L.847,

No.356), known as the Banking Code of 1965.

§ 6210.  Markups.

(a)  General rule.--A markup that is consistent with the

guidelines set by the department is not excessive.

(b)  Excessive markup.--

(1)  A markup in excess of the guidelines set by the

department shall be deemed excessive.

(2)  Until the department adopts its guidelines, a markup

for a service contract, warranty, debt cancellation agreement

and debt suspension agreement in excess of 100% of the cost

to the dealer shall be deemed excessive.

SUBCHAPTER B

LICENSES

Sec.

6211.  General license rules.

6212.  Initial license application.

6213.  Bond.

6214.  License fees.

6215.  License certificate.

6216.  License renewal.

6217.  Refusal to issue license or license renewal.

6218.  Revocation or suspension of license.

6219.  Multiple places of business.

§ 6211.  General license rules.

(a)  License required.--The following persons may engage or

continue to engage in this Commonwealth as a principal,

employee, agent or broker only as authorized in this chapter and

under a license issued by the department:

(1)  An installment seller.

(2)  A sales finance company.

(3)  A collector-repossessor.

(b)  Term.--

(1)  Subject to paragraph (2), unless revoked or

suspended under section 6218 (relating to revocation or

suspension of license) or otherwise surrendered, a license

shall be valid for one year.

(2)  A license shall expire on October 1 annually, after

the license is initially approved or renewed.

(c)  Transfer or assignment.--A license may not be

transferred or assigned.

§ 6212.  Initial license application.

(a)  General rule.--An initial license application shall be

in writing, under oath and in the form prescribed by the

department.

(b)  Contents.--An initial license application shall contain

the following:

(1)  The name under which the business is conducted.

(2)  The physical street address of the place of

business.

(3)  The date of registration with the Secretary of the

Commonwealth of any fictitious or trade name of the business.

(4)  If the applicant is a corporation:

(i)  the date and place of incorporation; and

(ii)  the names and addresses of the officers and

directors.

(5)  If the applicant is an individual owner, the name

and residence address of the owner.

(6)  If the applicant is a partnership, association or

limited liability company, the name and residence address of

each owner, partner or member and any managers.

(7)  Any other information that the department requires.

(c)  Process; notice.--

(1)  An application filed by an association or

corporation shall be accompanied by a power of attorney

showing the name and address of the authorized agent in this

Commonwealth upon whom judicial and other process or legal

notice may be served.

(2)  The department is authorized to accept service of

process or notice if the agent in paragraph (1):

(i)  has died;

(ii)  is removed from this Commonwealth; or

(iii)  is under a legal disability or otherwise

disqualified from serving as agent.

§ 6213.  Bond.

(a)  Bond required.--A bond shall accompany each license

application for a sales finance company and collector-

repossessor.

(b)  Form.--The bond shall be in the form prescribed by the

department.

(c)  Amount.--

(1)  A bond for a sales finance company shall be in the

amount of $10,000.

(2)  A bond for a collector-repossessor shall be in the

amount of $5,000.

(d)  Execution.--

(1)  Except as provided in paragraph (2), the bond shall

be executed by a surety company authorized by the laws of

this Commonwealth to transact business.

(2)  If the bond accompanying a license application for a

sales finance company is filed by a financial institution

within this Commonwealth, the financial institution may

execute the bond on its own behalf.

(3)  The bond shall be executed to the Commonwealth.

(e)  Purpose.--The bond shall be for the use of the

Commonwealth and for any person aggrieved by the misconduct of

the licensee.

(f)  Condition.--The condition of the bond is that the

licensee will:

(1)  comply with and abide by the provisions of this

chapter and the rules and regulations of the department; and

(2)  pay to the Commonwealth, the department or a person

all money due to each under the provisions of this chapter.

(g)  Action on bond.--A person may maintain an action on the

bond in a court having jurisdiction of the amount claimed if all

the following occur:

(1)  The person is aggrieved by the misconduct of a

licensee.

(2)  The person receives a judgment against the licensee

for the misconduct.

(3)  The person executes on the judgment.

(4)  The department assents to the action on the bond.

§ 6214.  License fees.

(a)  Amount.--A license application shall be accompanied by a

license fee as set forth in section 603-A of the act of April 9,

1929 (P.L.177, No.175), known as The Administrative Code of

1929.

(b)  Abatement.--No abatement in the amount of the license

fee shall be made if the license is:

(1)  issued for less than one year; or

(2)  surrendered, canceled or revoked prior to the

expiration of the license period for which the license was

issued.

§ 6215.  License certificate.

(a)  Issuance.--If the department approves an applicant's

license application, it shall issue to the applicant a license

certificate showing the name and address of the person

authorized to do business under the license.

(b)  Public inspection.--

(1)  An installment seller and a sales finance company

shall post the license certificate in a conspicuous place in

the place of business of the licensee, so that the

certificate is in full view of the public at all times.

(2)  A collector-repossessor shall carry the license

certificate in his or her immediate possession whenever

engaged in the type of business for which the license is

issued, so that the certificate may be presented for

inspection upon request by any person entitled to inspection.

(c)  Amendment.--

(1)  A licensee desiring to change the address of the

place of business shall:

(i)  give prior written notice to the department;

(ii)  return the license certificate to the

department for amendment; and

(iii)  retain a copy of the license certificate.

(2)  The department shall amend the license certificate

to show the new address and the date. The new address shall

thereafter be the authorized address of the licensee.

(3)  A licensee is not required to pay a charge for

amendment of a license certificate to effect a change of

address.

§ 6216.  License renewal.

An application for a license renewal shall have the following

characteristics:

(1)  The application shall be in writing, under oath and

in the form prescribed by the department.

(2)  The application shall be filed at least 15 days

prior to October 1.

(3)  The application shall include an update of the

information under section 6212(b) and (c)(1) (relating to

initial license application).

(4)  The application shall be accompanied by the

following:

(i)  A new bond under the same provisions as set

forth in section 6213 (relating to bond), which shall be

filed annually at least 15 days prior to October 1.

(ii)  A license fee under the same provisions as set

forth in section 6214 (relating to license fees), which

shall be paid annually on or before October 1 for each

license and place of business.

§ 6217.  Refusal to issue license or license renewal.

(a)  Discretionary refusal.--Subject to subsection (b), the

department may refuse to issue a license or renew a license

because of any of the following:

(1)  The applicant has made a material misstatement in

the application for license or license renewal.

(2)  The existence of any of the grounds under section

6218(a) (relating to revocation or suspension of license).

(3)  The department is not satisfied that the financial

responsibility, character, reputation, integrity and general

fitness of the applicant command the confidence of the public

and warrant the belief that the business for which the

license application is filed will be operated lawfully,

honestly, fairly and in accordance with this chapter and the

general laws of this Commonwealth. In so determining, the

department shall consider the applicant's:

(i)  owners, partners or members and any managers, if

the applicant is a partnership, association or limited

liability company; and

(ii)  officers and directors, if the applicant is a

corporation.

(b)  Mandatory refusal.--

(1)  The department may not issue a license to an

applicant under this chapter until the expiration of at least

one year from the effective date of any revocation of the

applicant's license or the department's refusal to issue a

license or license renewal to the applicant.

(2)  The department may not issue a license or renew a

license if, within ten years of the date of license

application or license renewal application, the applicant or

the applicant's affiliate, owner, partner, member, officer,

director, employee or agent has pleaded guilty to, has

entered a plea of nolo contendere to or has been convicted of

a violation under section 6271 (relating to operating without

license) or subsection A of section 37A of the act of June

28, 1947 (P.L.1110, No.476), known as the Motor Vehicle Sales

Finance Act.

(3)  Subject to paragraph (4), if an applicant's license

was previously revoked under this chapter or the Motor

Vehicle Sales Finance Act, the department may not issue

another license to the applicant if, within ten years of the

date of license application, the applicant or the applicant's

affiliate, owner, partner, member, officer, director,

employee or agent has pleaded guilty to, has entered a plea

of nolo contendere to or has been convicted of any violation

of this chapter or the Motor Vehicle Sales Finance Act.

(4)  If an applicant's license was previously revoked

under the Motor Vehicle Sales Finance Act solely on the basis

of the conduct of the applicant's spouse, paragraph (3) is

not applicable.

(c)  License fee.--

(1)  Except as provided in paragraph (2), if the

department rejects a license application or license renewal

application, it shall return the license fee that accompanied

the application.

(2)  The department may retain all or part of the license

fee if the license application or license renewal application

was rejected based wholly or partially on false information

furnished by the applicant in the application.

§ 6218.  Revocation or suspension of license.

(a)  Grounds.--Upon notice under subsection (b), the

department may revoke or suspend a license if it discovers a

fact or condition that, had it existed or been discovered at the

time of filing of any license application, would have warranted

disapproval of the application or if it finds that the licensee

has engaged in any of the following:

(1)  Made a material misstatement in the license

application.

(2)  Violated a provision of this chapter.

(3)  Violated an order or regulation issued by the

department under and within the authority of this chapter.

(4)  Failed to comply with a demand, order or regulation

of the department lawfully made by the department under and

within the authority of this chapter.

(5)  Refused or refuses to permit the department to make

examinations authorized by this chapter.

(6)  Failed to maintain in effect the bond required under

section 6213 (relating to bond), in the case of a sales

finance company and collector-repossessor.

(7)  Failed to maintain satisfactory records required by

this chapter or prescribed by the department.

(8)  Falsified records required by this chapter to be

maintained of the business contemplated by this chapter.

(9)  Failed to file a report with the department within

the time stipulated in this chapter.

(10)  Failed to pay the fine required by this chapter for

failure to file reports to the department within the time

stipulated.

(11)  Defrauded a buyer to the buyer's damage or

willfully failed to perform a written agreement with a buyer.

(12)  With respect to the tax or fee due the Commonwealth

upon the sale of a motor vehicle:

(i)  Failed to collect the tax or fee.

(ii)  Collected the tax or fee and failed to issue a

true copy of the tax report to the purchaser, as required

by law.

(iii)  Issued a false or fraudulent tax report or

copy thereof.

(iv)  Failed to pay the tax or fee to the

Commonwealth at the time and in the manner required by

law.

(13)  Engaged in unfair, deceptive, fraudulent or illegal

practices or conduct in connection with a business regulated

by this chapter, including making excessive mark-ups as set

forth in this chapter.

(b)  Notice.--

(1)  The department shall provide 30 days' written notice

to the licensee for a revocation or suspension of a license.

(2)  The notice under this subsection shall be forwarded

by registered mail to the place of business of the licensee,

as shown in the license application or as amended on the

license certificate in case of change of address subsequent

to issuance of the license certificate.

§ 6219.  Multiple places of business.

(a)  License application.--A separate license application

under section 6212 (relating to initial license application)

shall be filed for each place of business conducted by or to be

established by a licensee within this Commonwealth.

(b)  Bond.--A bond under section 6213 (relating to bond)

shall be filed for each place of business conducted by a sales

finance company and a collector-repossessor within this

Commonwealth.

(c)  License fee.--With respect to section 6214 (relating to

license fees), a separate license fee in the same amount shall

be paid for each place of business conducted by a licensee

within this Commonwealth.

(d)  Requirements.--

(1)  Except as provided in paragraph (2), only one place

of business may be operated under the same license.

(2)  For an installment seller, only one license is

required if:

(i)  every place of business is conducted under one

name; and

(ii)  the business records are kept in one place.

(3)  A licensee may operate more than one place of

business only after performing the following actions:

(i)  Filing an application for each additional place

of business.

(ii)  Furnishing a bond for each additional place of

business in the case of a sales finance company and

collector-repossessor.

(iii)  Paying the respective license fee for each

place of business.

(e)  License suspension and revocation.--

(1)  Subject to paragraph (2), the department may revoke

or suspend only the particular license to which grounds exist

under section 6218(a) (relating to revocation or suspension

of license).

(2)  If the department finds that grounds for revocation

are of general application to all places of business or more

than one place of business operated by a licensee, it may

revoke all the licenses issued to the licensee or those

licenses to which grounds exist.

SUBCHAPTER C

INSTALLMENT SALE CONTRACTS

Sec.

6221.  Requirements.

6222.  Contents.

6223.  Notice.

6224.  Itemization.

6225.  Disclosure.

6226.  Heavy commercial motor vehicle.

6227.  Manufactured homes.

6228.  Prohibited provisions.

6229.  Transfer.

6230.  Statement of account to buyer.

6231.  Payment receipts.

6232.  Release of liens.

6233.  Prohibited charges.

6234.  Waiver of statutory protection prohibited.

6235.  Effect of license expiration, surrender and revocation on

contracts.

6236.  Enforcement.

§ 6221.  Requirements.

(a)  General rule.--An installment sale contract shall:

(1)  be in writing;

(2)  contain all the agreements between a buyer and an

installment seller relating to the installment sale of the

motor vehicle sold;

(3)  be signed by the buyer and seller; and

(4)  be complete as to all essential provisions before

the buyer signs the contract.

(b)  Copies.--

(1)  The installment seller shall furnish an exact copy

of the installment sale contract without charge to the buyer

at the time the buyer signs the contract.

(2)  The buyer's copy of the contract shall contain the

signature of the seller identical to the signature on the

original contract.

(3)  Upon request, a holder shall furnish to the buyer a

duplicate copy of the contract upon payment of a reasonable

fee not to exceed the cost of production.

(c)  Acknowledgment.--

(1)  The installment seller shall obtain from the buyer a

written acknowledgment of the buyer's receipt of a copy of

the contract.

(2)  The acknowledgment shall be:

(i)  printed below the buyer's signature to the

contract, if attached to the contract; and

(ii)  independently signed by the buyer.

(d)  Equal periods and amounts.--An installment sale contract

shall provide for payment of the time balance in substantially

equal periods and amounts except in the following instances:

(1)  The buyer expects his or her income to vary because

of seasonal employment, seasonal sales, use of accelerated

depreciation for tax purposes or other known causes, in which

case the contract may provide for payment of the time balance

in amounts that vary with the expected varying income.

(2)  The sale of a heavy commercial motor vehicle.

(3)  The sale of a motor vehicle to a salesperson

licensed under the act of December 22, 1983 (P.L.306, No.84),

known as the Board of Vehicles Act.

(4)  When the contract provides for fixed residual value

financing.

(e)  Disclosures.--

(1)  Prior to a buyer's execution of an installment sale

contract, an installment seller shall provide to the buyer an

oral and a written disclosure in plain language.

(2)  The written disclosure shall:

(i)  be separate from the contract to be signed by

the buyer;

(ii)  be complete without any blank spaces; and

(iii)  advise that the purchase of specific items

related to acquiring the motor vehicle is voluntary and

not required as a condition of the buyer's receiving the

installment sale contract loan. The items to which this

subparagraph applies:

(A)  include a service contract, warranty, debt

cancellation agreement, debt suspension agreement and

insurance products not required by section 6241

(relating to insurance); and

(B)  exclude an option or accessory physically

attached to the motor vehicle.

(3)  The completed written disclosure shall be copied

exactly and furnished by the seller to the buyer at no cost

when the buyer receives a copy of the contract.

(f)  Definition.--As used in this section, the term "fixed

residual value financing" means the manner of purchase whereby a

buyer listed as the owner on the motor vehicle title agrees, at

the conclusion of a predetermined schedule of installment

payments made in substantially equal periods and amounts, to:

(1)  satisfy the balance of the contractual amount owing;

(2)  refinance any balance owing on the terms previously

agreed upon at the time of executing the installment sale

contract; or

(3)  surrender the motor vehicle at the time and manner

agreed upon at the time of executing the contract.

§ 6222.  Contents.

An installment sale contract shall contain the following:

(1)  The full name and address of all the parties to the

contract.

(2)  The date that the buyer signed the contract.

(3)  A description of the motor vehicle sold, which shall

be sufficient for accurate identification.

(4)  The notice under section 6223 (relating to notice).

(5)  The following items in writing and in a clear and

conspicuous manner, with each component of each subparagraph

listed separately:

(i)  The purchase price of the motor vehicle, which

shall include the following:

(A)  Taxes.

(B)  Charges for delivery.

(C)  Charges for servicing, repairing or

improving the motor vehicle.

(D)  Charges for a service contract, which:

(I)  shall appear as separate items after the

following or substantially similar words, which

shall be boldface, underlined, adjacent to the

purchase price and in type print size not smaller

than that used for all item categories:

"including optional service contracts and/or

extended warranties in the amount of"; or

(II)  may be separately included as "other

charges" under subparagraph (v).

(E)  Charges for accessories and installation.

(F)  Other charges normally included in the

delivered purchase price of a motor vehicle.

(ii)  The down payment made by the buyer at the time

of or prior to execution of the contract, which shall

separately indicate the extent to which it is made in

cash or represented by either or both of the following:

(A)  The agreed-upon value of a trade-in motor

vehicle, along with a description of the trade-in

sufficient for accurate identification.

(B)  Other goods.

(iii)  The unpaid purchase price balance, which is

the difference between the following:

(A)  The purchase price under subparagraph (i).

(B)  The down payment under subparagraph (ii).

(iv)  Insurance charges, the payment for which the

seller agrees to extend credit to the buyer, which shall

set forth the term of insurance, a concise description of

the coverage and the amount of the premium.

(v)  Other charges necessary or incidental to the

sale or financing of a motor vehicle:

(A)  which the seller contracts to retain,

receive or pay on behalf of the buyer; or

(B)  for which the seller agrees to extend credit

to the buyer as authorized by this chapter, including

charges for a debt cancellation agreement and debt

suspension agreement.

(vi)  The principal amount financed, which is the sum

of the following:

(A)  The unpaid purchase price balance under

subparagraph (iii).

(B)  The insurance charges under subparagraph

(iv).

(C)  The other charges under subparagraph (v).

(D)  Amounts representing payment of a prior

credit or lease balance to discharge a security

interest, lien or lease interest on a motor vehicle

or other property traded or returned.

(vii)  The finance charge, which is the consideration

in excess of the purchase price under subparagraph (i),

excluding insurance charges under subparagraph (iv) and

other charges under subparagraph (v), and which the buyer

agrees to pay to the seller for the privilege of

purchasing the motor vehicle under the installment sale

contract.

(viii)  The time balance, which represents the total

obligation of the buyer and which is the sum of the

following:

(A)  The principal amount financed under

subparagraph (vi).

(B)  The finance charge under subparagraph (vii).

(ix)  The payment schedule, which shall state the

number, amount and timing of the payments required to

liquidate the time balance.

(6)  A description that reasonably identifies collateral

security in which a security interest is provided to secure

the buyer's obligation pursuant to 13 Pa.C.S. § 9108 

(relating to sufficiency of description), including the motor

vehicle and other collateral.

(7)  A summary notice of the buyer's principal legal

rights regarding prepayment of the contract, rebate of

finance charge and reinstatement of the contract in the event

of repossession and notice of the right to receive the

statement of account under section 6230(a) (relating to

statement of account to buyer).

(8)  Specific provisions regarding the following:

(i)  The holder's right to accelerate the maturity of

the contract upon default or other breach of contract.

(ii)  The buyer's liability respecting nonpayment.

(iii)  The dollar or percentage amount of late

charges that may be imposed due to a late payment, other

than a deferral or extension charge.

(iv)  Repossession and sale of the motor vehicle, in

case of default or other breach of contract.

(9)  The following statement:

If you encounter a problem, you may have additional rights

under the Unfair Trade Practices and Consumer Protection Law,

which is administered by the Pennsylvania Office of Attorney

General.

§ 6223.  Notice.

(a)  Requirement.--An installment sale contract shall contain

the notice under subsection (b), which shall be printed directly

above the space provided for the signature of the buyer.

(b)  Form.--