Chapter 390

2008 -- S 2262 SUBSTITUTE A

Enacted 07/08/08

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - MOTOR

VEHICLES - DECEPTIVE TRADE PRACTICES

Introduced By: Senator Hanna M. Gallo

Date Introduced: February 07, 2008

It is enacted by the General Assembly as follows:

     SECTION 1. Section 6-13.1-28 of the General Laws in Chapter 6-13.1 entitled

"Deceptive Trade Practices" is hereby amended to read as follows:

6-13.1-28. Financing of motor vehicles -- Term and rate of interest prominently

displayed. [Effective January 1, 2008.] -- (a) Any contract to finance the sale of a motor vehicle

shall prominently display the term and rate of interest.

      (b) The borrower's initials or signature shall appear immediately adjacent to the term and

to the rate of interest on the loan agreement which shall only serve as an acknowledgement that

the borrower has been informed of the terms and rate. The borrower shall also be required to

separately sign the loan agreement to bind themselves to the contract.

      (c) Any agreement to finance a motor vehicle that does not comply with the provision of

this section shall be voidable within thirty (30) days at the option of the borrower.; provided,

however the borrower shall be responsible for any damage to the vehicle.

     SECTION 2. This act shall take effect upon passage.

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LC01472/SUB A

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