Section 407.2030

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 2023   

  407.2030.  Definitions. — For purposes of sections 407.2030 to 407.2055, the following terms mean:

  (1)  "Administrator", any person, other than an insurer or creditor, who performs administrative or operational functions for debt waiver programs;

  (2)  "Borrower", a debtor or retail buyer or lessee under a finance agreement;

  (3)  "Creditor":

  (a)  The lender in a loan or credit transaction;

  (b)  The lessor in a lease transaction;

  (c)  Any retail seller of motor vehicles;

  (d)  The seller in commercial retail installment transactions; or

  (e)  The assignee of any person described in paragraphs (a) to (d) of this subdivision to whom the credit obligation is payable;

  (4)  "Debt waiver", any guaranteed asset protection waiver or excess wear and use waiver;

  (5)  "Excess wear and use waiver", a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a motor vehicle, which agreement shall be part of, or a separate addendum to, the lease agreement.  Excess wear and use waivers may also cancel or waive amounts due for excess mileage;

  (6)  "Guaranteed asset protection waiver", a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement shall be part of, or a separate addendum to, the finance agreement.  A guaranteed asset protection waiver may also provide, with or without a separate charge, a benefit that waives an amount, or provides a borrower with a credit, toward the purchase of a replacement motor vehicle.

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(L. 2023 S.B. 398)