PRIOR PRINTER'S NO. 2243 PRINTER'S NO. 2797
No. 1838 Session of 1977
INTRODUCED BY MESSRS. BENNETT, L. E. SMITH, BRUNNER, MEBUS,
GEISLER, POTT, ZEARFOSS AND VROON, NOVEMBER 2, 1977
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MARCH 15, 1978
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 AND <--
21 THE RIGHTS AND DUTIES OF BUYERS AND PERSONS FINANCING
22 INSTALLMENT SALES OF MOBILE HOMES.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Section 3 and subsection (d) A. of section 19, <--
26 act of June 28, 1947 (P.L.1110, No.476), known as the "Motor
27 Vehicle Sales Finance Act," amended June 19, 1974 (P.L.364,
1 No.121), are amended by adding clauses to read:
2 Section 3. Definitions.--The following words, terms and
3 phrases when used in this act shall have the meaning ascribed to
4 them in this section, except where the context clearly indicates
5 otherwise:--
6 * * *
7 21. "Mobile homes" shall mean those vehicles defined as such
8 in section 102 of Title 75, act of November 25, 1970 (P.L.707,
9 No.230), known as the Pennsylvania Consolidated Statutes, added
10 June 17, 1976 (P.L.162, No.81).
11 Section 19. Finance Charges.--
12 A. A seller licensed under the provisions of this act shall
13 have the power and authority to charge, contract for, receive or
14 collect a finance charge, as defined in this act, on any
15 installment sale contract covering the retail sale of a motor
16 vehicle in this Commonwealth, which shall not exceed the rates
17 indicated for the respective classification of motor vehicles as
18 follows:
19 Class I. New motor vehicles, except those having a cash
20 price of ten thousand dollars ($10,000) or more and used
21 primarily for commercial purposes and except mobile homes, six
22 percent (6%) per year.
23 Class II. Used motor vehicles of a model designated by the
24 manufacturer by a year not more than two (2) years prior to the
25 year in which the sale is made, nine percent (9%) per year.
26 Class III. Older used motor vehicles of a model designated
27 by the manufacturer by a year more than two (2) years prior to
28 the year in which the sale is made, twelve percent (12%) per
29 year.
30 Class IV. New motor vehicles having a cash price of ten
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1 thousand dollars ($10,000) or more and used primarily for
2 commercial purposes, seven and one-half percent (7 1/2%) per
3 year.
4 Class V. New mobile homes, such percent established as a
5 maximum finance charge for mobile homes by regulation of the
6 Federal Housing Administration, pursuant to the National Housing
7 Act of June 27, 1934 (48 Stat. 1246), whether or not the mobile
8 home is subject to a sale on credit or loan insured or
9 guaranteed in whole or in part by such administration.
10 * * *
11 SECTION 2. SECTION 23 OF THE ACT IS AMENDED BY ADDING A <--
12 SUBSECTION TO READ:
13 SECTION 23. REPOSSESSION.--
14 * * *
15 G 1. BEFORE ANY HOLDER MAY ACCELERATE THE MATURITY OF ANY
16 INSTALLMENT SALE CONTRACT FOR A MOBILE HOME, COMMENCE ANY LEGAL
17 ACTION TO RECOVER UNDER SUCH OBLIGATION, OR TAKE POSSESSION OF
18 ANY SECURITY OF THE INSTALLMENT BUYER FOR SUCH CONTRACT, SUCH
19 PERSON SHALL GIVE THE INSTALLMENT BUYER NOTICE OF SUCH INTENTION
20 AT LEAST THIRTY (30) DAYS IN ADVANCE AS PROVIDED IN THIS
21 SUBSECTION. NOTICE OF INTENTION TO TAKE ACTION AS SPECIFIED IN
22 THIS SUBSECTION SHALL BE IN WRITING, AND SENT TO THE INSTALLMENT
23 BUYER BY REGISTERED OR CERTIFIED MAIL AT THE ADDRESS WHERE THE
24 MOBILE HOME IS LOCATED. THE WRITTEN NOTICE SHALL CLEARLY AND
25 CONSPICUOUSLY STATE:
26 (A) THE PARTICULAR OBLIGATION OR SECURITY INTEREST;
27 (B) THE NATURE OF THE DEFAULT CLAIMED;
28 (C) THE RIGHT OF THE INSTALLMENT BUYER TO CURE THE DEFAULT
29 AS PROVIDED IN THIS SUBSECTION AND EXACTLY WHAT PERFORMANCE
30 INCLUDING WHAT SUM OF MONEY, IF ANY, MUST BE TENDERED TO CURE
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1 THE DEFAULT;
2 (D) THAT THE INSTALLMENT BUYER MAY CURE THE DEFAULT AT ANY
3 TIME BEFORE TITLE TO THE MOBILE HOME IS LAWFULLY TRANSFERRED
4 FROM THE INSTALLMENT BUYER WHICH SHALL BE AT LEAST FORTY-FIVE
5 (45) DAYS AFTER RECEIPT OF THE NOTICE; AND
6 (E) THE METHOD OR METHODS BY WHICH THE INSTALLMENT BUYER'S
7 OWNERSHIP OR POSSESSION OF THE MOBILE HOME MAY BE TERMINATED.
8 2. THE NOTICE OF INTENTION TO ACCELERATE, COMMENCE LEGAL
9 ACTION OR REPOSSESS PROVIDED IN THIS SUBSECTION SHALL NOT BE
10 REQUIRED WHERE THE INSTALLMENT BUYER HAS ABANDONED OR
11 VOLUNTARILY SURRENDERED THE PROPERTY WHICH IS THE SUBJECT OF THE
12 MOBILE HOME INSTALLMENT SALE.
13 3. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, AFTER A
14 NOTICE OF INTENTION TO ACCELERATE, COMMENCE LEGAL ACTION OR
15 REPOSSESS HAS BEEN GIVEN PURSUANT TO PARAGRAPH (1), AT ANY TIME
16 BEFORE TITLE TO THE MOBILE HOME IS LAWFULLY TRANSFERRED FROM THE
17 INSTALLMENT BUYER FOR DEFAULT UPON A MOBILE HOME INSTALLMENT
18 SALES CONTRACT, THE INSTALLMENT BUYER OR ANY ONE IN HIS BEHALF,
19 NOT MORE THAN THREE (3) TIMES IN ANY CALENDAR YEAR, MAY CURE HIS
20 DEFAULT AND PREVENT SALE OR OTHER DISPOSITION OF THE MOBILE HOME
21 AND AVOID ACCELERATION, IF ANY, BY TENDERING THE AMOUNT OR
22 PERFORMANCE SPECIFIED IN THIS PARAGRAPH.
23 TO CURE A DEFAULT UNDER THIS SUBSECTION, AN INSTALLMENT BUYER
24 SHALL:
25 (A) PAY OR TENDER IN THE FORM OF CASH, CASHIER'S CHECK OR
26 CERTIFIED CHECK, ALL SUMS WHICH WOULD HAVE BEEN DUE AT THE TIME
27 OF PAYMENT OR TENDER IN THE ABSENCE OF DEFAULT AND THE EXERCISE
28 OF AN ACCELERATION CLAUSE, IF ANY.
29 (B) PERFORM ANY OTHER OBLIGATION WHICH HE WOULD HAVE BEEN
30 BOUND TO PERFORM IN THE ABSENCE OF DEFAULT OR THE EXERCISE OF AN
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1 ACCELERATION CLAUSE, IF ANY.
2 (C) PAY OR TENDER ANY REASONABLE FEES ALLOWED UNDER
3 PARAGRAPH (6) AND THE REASONABLE COSTS OF PROCEEDING TO COMMENCE
4 LEGAL ACTION AS SPECIFIED IN WRITING BY THE HOLDER ACTUALLY
5 INCURRED TO THE DATE OF PAYMENT.
6 (D) PAY ANY REASONABLE LATE PENALTY, IF PROVIDED FOR IN THE
7 SECURITY DOCUMENT.
8 (E) PAY THE COSTS WHICH ARE REASONABLE AND ACTUALLY INCURRED
9 BY THE HOLDER FOR DETACHING AND TRANSPORTING THE MOBILE HOME TO
10 THE SITE OF THE SALE.
11 4. CURE OF A DEFAULT IN THE PAYMENT OF A MOBILE HOME
12 CONTRACT PURSUANT TO THIS SUBSECTION RESTORES THE INSTALLMENT
13 BUYER TO THE SAME POSITION AS IF THE DEFAULT HAD NOT OCCURRED.
14 5. MOBILE HOME INSTALLMENT CONTRACTS CONTRACTED FOR ON OR
15 AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT MAY BE PREPAID
16 WITHOUT ANY PENALTY OR OTHER CHARGE FOR SUCH PREPAYMENT AT ANY
17 TIME BEFORE THE END OF THE PERIOD OF THE LOAN.
18 6. WITH REGARD TO MOBILE HOME INSTALLMENT CONTRACTS, NO
19 HOLDER SHALL CONTRACT FOR OR RECEIVE ATTORNEYS' FEES FROM AN
20 INSTALLMENT BUYER EXCEPT AS FOLLOWS:
21 (A) UPON COMMENCEMENT OF LEGAL ACTION WITH RESPECT TO A
22 MOBILE HOME INSTALLMENT CONTRACT, ATTORNEYS' FEES WHICH ARE
23 REASONABLE AND ACTUALLY INCURRED BY THE HOLDER MAY BE CHARGED TO
24 THE INSTALLMENT BUYER.
25 (B) PRIOR TO COMMENCEMENT OF LEGAL ACTION ATTORNEY'S FEES
26 WHICH ARE REASONABLE AND ACTUALLY INCURRED NOT IN EXCESS OF
27 FIFTY DOLLARS ($50) PROVIDED THAT NO ATTORNEYS' FEES MAY BE
28 CHARGED FOR LEGAL EXPENSES INCURRED PRIOR TO THE THIRTY-DAY
29 NOTICE PROVIDED IN PARAGRAPH (1).
30 7. NOTWITHSTANDING ANY OTHER LAW, THE PROVISIONS OF THIS
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1 SUBSECTION MAY NOT BE WAIVED BY ANY ORAL OR WRITTEN AGREEMENT
2 EXECUTED BY ANY PERSON.
3 Section 2. This act shall take effect immediately.
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