PRINTER'S NO. 2243
No. 1838 Session of 1977
INTRODUCED BY BENNETT, L. E. SMITH, BRUNNER, MEBUS, GEISLER,
POTT AND ZEARFOSS, NOVEMBER 2, 1977
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 2, 1977
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 the rate of finance charge for mobile homes.
21 The General Assembly of the Commonwealth of Pennsylvania
22 hereby enacts as follows:
23 Section 1. Section 3 and subsection (d) of section 19, act
24 of June 28, 1947 (P.L.1110, No.476), known as the "Motor Vehicle
25 Sales Finance Act," amended June 19, 1974 (P.L.364, No.121), are
26 amended by adding clauses to read:
27 Section 3. Definitions.--The following words, terms and
1 phrases when used in this act shall have the meaning ascribed to
2 them in this section, except where the context clearly indicates
3 otherwise:--
4 * * *
5 21. "Mobile homes" shall mean those vehicles defined as such
6 in section 102 of Title 75, act of November 25, 1970 (P.L.707,
7 No.230), known as the Pennsylvania Consolidated Statutes, added
8 June 17, 1976 (P.L.162, No.81).
9 Section 19. Finance Charges.--
10 A. A seller licensed under the provisions of this act shall
11 have the power and authority to charge, contract for, receive or
12 collect a finance charge, as defined in this act, on any
13 installment sale contract covering the retail sale of a motor
14 vehicle in this Commonwealth, which shall not exceed the rates
15 indicated for the respective classification of motor vehicles as
16 follows:
17 Class I. New motor vehicles, except those having a cash
18 price of ten thousand dollars ($10,000) or more and used
19 primarily for commercial purposes and except mobile homes, six
20 percent (6%) per year.
21 Class II. Used motor vehicles of a model designated by the
22 manufacturer by a year not more than two (2) years prior to the
23 year in which the sale is made, nine percent (9%) per year.
24 Class III. Older used motor vehicles of a model designated
25 by the manufacturer by a year more than two (2) years prior to
26 the year in which the sale is made, twelve percent (12%) per
27 year.
28 Class IV. New motor vehicles having a cash price of ten
29 thousand dollars ($10,000) or more and used primarily for
30 commercial purposes, seven and one-half percent (7 1/2%) per
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1 year.
2 Class V. New mobile homes, such percent established as a
3 maximum finance charge for mobile homes by regulation of the
4 Federal Housing Administration, pursuant to the National Housing
5 Act of June 27, 1934 (48 Stat. 1246), whether or not the mobile
6 home is subject to a sale on credit or loan insured or
7 guaranteed in whole or in part by such administration.
8 * * *
9 Section 2. This act shall take effect immediately.
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