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H.562

Introduced by   Representative Condon of Colchester

Referred to Committee on

Date:

Subject:  Commerce and trade; motor vehicle retail installment sales financing

Statement of purpose:  This bill proposes to allow the financing of new motor vehicles to include the financing of debt owed on traded-in motor vehicles.

AN ACT RELATING TO MOTOR VEHICLE RETAIL INSTALLMENT SALES CONTRACTS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  9 V.S.A. § 2355(f)(1)(D) is amended to read:

(D)  The amount, if any, paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle, the amount, if any, for insurance including the cost of credit life insurance at a rate authorized by rate schedules then in effect and on file with the commissioner of banking, insurance, securities, and health care administration, the cost, if any, of physical damage insurance specifying the type or types and the term of coverage, the cost, if any, for service contracts as defined in section 4247 of Title 8, and the reasonable cost, if any, for a debt protection agreement as set forth in section 10405 of Title 8;

Sec. 2.  8 V.S.A. § 2201(c) is amended to read:

(c)  No license shall be required of:

* * *

(10)  persons who loan an aggregate of less than $50,000.00 in any one year at rates of interest of no more than 12 percent per annum; or

(11)  nonprofit institutions of higher education, exempt from taxation under section 501(c)(3) of the Internal Revenue Code, that make residential mortgage loans to their employees from their own funds; or

(12)  a seller who, pursuant to subdivision 2355(f)(1)(D) of Title 9, includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company or other entity licensed pursuant to this title to purchase motor vehicle retail installment sales contracts.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us