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 19920H2357B3008 - 2 -
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. L9L12PJP/19920H2357B3008 - 3 -