US Laws, Codes, Statutes & Cases

Chapter 83 — Retail Installment Contracts

 

2007 EDITION

 

RETAIL INSTALLMENT CONTRACTS

 

COMMERCIAL TRANSACTIONS

 

GOODS AND SERVICES

 

83.010       Definitions for ORS 83.010 to 83.190

 

83.020       Retail installment contract requirements; exceptions

 

83.030       Contents of contract

 

83.040       Subsequent purchases under original contract

 

83.050       Contracts completed by mail and based on catalog of seller

 

83.060       Filling blanks

 

83.070       Delivery of copy of contract to buyer

 

83.080       Informing buyer of service charge and right to prepay; monthly statement

 

83.090       Service charge; other fees

 

83.095       Service charge computed by actuarial method

 

83.100       Extra charges; miscellaneous provisions of contract

 

83.110       Insurance

 

83.120       Receipts; schedule of payments

 

83.130       Voluntary prepayment by buyer; refund

 

83.140       Consolidation of purchases with prior contract

 

83.150       Unenforceable contract provisions

 

83.160       Waiver of ORS 83.010 to 83.190

 

83.170       Effect of violation of ORS 83.010 to 83.190 by seller

 

83.180       Enforcement of ORS 83.010 to 83.190

 

83.190       Civil penalties

 

MOTOR VEHICLES; MOBILE HOMES

 

83.510       Definitions for ORS 83.510 to 83.680

 

83.520       Form and contents of retail installment contract

 

83.530       Filling blanks

 

83.540       Delivery of copy of contract to buyer

 

83.560       Finance charge

 

83.565       Finance charge computed by actuarial method; requirements; notice

 

83.580       Insurance

 

83.590       Delinquency and collection charges

 

83.600       Schedule of payments; receipts

 

83.610       Delivery to buyer of instrument indicating full payment; release of security

 

83.620       Voluntary prepayment by buyer; refund

 

83.630       Extension of scheduled due date; deferment of scheduled payment; refinance charge

 

83.635       Acceptance of retail installment contract by lender

 

83.650       Effect of negotiation of notes on rights against motor vehicle dealer

 

83.660       Acceleration provision

 

83.670       Unenforceable contract provisions

 

83.680       Waiver of provisions of ORS 83.510 to 83.680

 

HOME SOLICITATION SALES

 

83.710       Definitions for ORS 83.710 to 83.750; application of ORS 83.710 to 83.750

 

83.715       Telephone solicitation sale; contract; contents

 

83.720       Cancellation of home solicitation sale; notice; exception

 

83.730       Written agreement or offer to purchase; contents; notice of buyer’s right to cancel; form

 

83.740       Duties of seller upon cancellation of sale or revocation of offer to purchase

 

83.750       Rights and duties of buyer upon cancellation of sale or revocation of offer to purchase

 

MISCELLANEOUS

 

83.811       Exemption from certain disclosure requirements for motor vehicle dealer or retail seller

 

83.813       Exemption from certain disclosure requirements for assignee of retail installment contract

 

83.820       Consumer paper; negotiability; exception; rights and liabilities of assignees

 

83.850       Definitions for ORS 83.850 and 83.860

 

83.860       Applicability of claims and defenses of borrower or lessee when loan made or lease funded in close connection with sale or retail lease

 

83.875       Definitions for ORS 83.875, 83.880, 83.890 and 83.895

 

83.880       Sale of motor vehicles, goods or services as time sale rather than loan

 

83.885       Sale of motor vehicles, personal property or services for business or commercial purposes as time sale rather than loan

 

83.890       Notice required in contract when seller intends to transfer contract

 

83.895       Effect of seller’s failure to provide notice

 

PENALTIES

 

83.990       Penalties

 

GOODS AND SERVICES

 

      83.010 Definitions for ORS 83.010 to 83.190. As used in ORS 83.010 to 83.190 unless the context requires otherwise:

      (1) “Cash sale price” means the price for which the seller would have sold or furnished to the buyer, and the buyer would have bought or obtained from the seller, the goods or services which are the subject matter of a retail installment transaction, if the sale had been a sale for cash. The cash sale price may include any taxes, registration and license fees and charges for transferring vehicle titles, delivery, installation, servicing, repairs, alterations or improvements.

      (2) “Goods” means all chattels personal, other than motor vehicles as defined in ORS 83.510, when purchased primarily for personal, family or household use and not for commercial or business use, but not including money or, except as provided in the next sentence, things in action. “Goods” includes but is not limited to merchandise certificates or coupons, issued by a retail seller, to be used in their face amount in lieu of cash in exchange for goods or services sold by such a seller and goods which, at the time of sale or subsequently, are to be so affixed to real property as to become a part thereof, whether or not severable therefrom.

      (3) “Official fees” means the amount of the fees prescribed by law for filing, recording or otherwise perfecting, and releasing or satisfying, a retained title, lien or other security interest created by a retail installment transaction.

      (4) “Principal balance” means the cash sale price of the goods or services which are the subject matter of a retail installment contract less the amount of the buyer’s down payment in money or goods or both, plus the amounts, if any, included therein, if a separate identified charge is made therefor and stated in the contract, for insurance and official fees.

      (5) “Rate” means the percentage which, when multiplied times the outstanding balance for each month or other installment period, yields the amount of the service charge for such month or period.

      (6) “Retail buyer” or “buyer” means a person who buys or agrees to buy goods or obtains services or agrees to have services rendered or furnished, from a retail seller.

      (7) “Retail charge agreement,” “revolving charge agreement” or “charge agreement” means an agreement entered into or performed in this state prescribing the terms of retail installment transactions which may be made thereunder from time to time and under the terms of which a service charge is to be computed in relation to the buyer’s unpaid balance from time to time.

      (8) “Retail installment contract” or “contract” means a contract, other than a retail charge agreement or an instrument reflecting a sale made pursuant thereto, entered into or performed in this state for a retail installment transaction. “Retail installment contract” includes a chattel mortgage, a conditional sale contract and a contract in the form of a bailment or a lease if the bailee or lessee contracts to pay as compensation for their use a sum substantially equivalent to or in excess of the value of the goods sold and if it is agreed that the bailee or lessee is bound to become, or for no other or a merely nominal consideration, has the option of becoming the owner of the goods upon full compliance with the provisions of the bailment or lease.

      (9) “Retail installment transaction” means any transaction in which a retail buyer purchases goods or services from a retail seller pursuant to a retail installment contract or a retail charge agreement which provides for a service charge and under which the buyer agrees to pay the unpaid balance in one or more installments.

      (10) “Retail seller” or “seller” means a person engaged in the business of selling goods or services to retail buyers.

      (11) “Service charge” however denominated or expressed, means the amount which is paid or payable for the privilege of purchasing goods or services to be paid for by the buyer in installments over a period of time. “Service charge” does not include the amount, if any, charged for insurance premiums, delinquency charges, attorney fees, court costs or official fees.

      (12) “Services” means work, labor or services of any kind when purchased primarily for personal, family or household use and not for commercial or business use whether or not furnished in connection with the delivery, installation, servicing, repair or improvement of goods and includes repairs, alterations or improvements upon or in connection with real property, but does not include services for which the price charged is required by law to be determined or approved by or to be filed, subject to approval or disapproval, with the United States or any state, or any department, division, agency, officer or official of either as in the case of transportation services.

      (13) “Time balance” means the principal balance plus the service charge. [1963 c.489 §1]

 

      83.020 Retail installment contract requirements; exceptions. (1) Except as provided in subsections (2) and (3) of this section, every retail installment contract shall be contained in a single document which shall contain the entire agreement of the parties including any promissory notes or other evidences of indebtedness between the parties relating to the transaction, except as provided in ORS 83.040, 83.050 and 83.140.

      (2) Where the buyer’s obligation to pay the time balance is represented by a promissory note secured by a chattel mortgage, the promissory note may be a separate instrument if the mortgage recites the amount and terms of payment of such note and the promissory note recites that it is secured by a mortgage.

      (3) In a transaction involving the repair, alteration or improvement upon or in connection with real property, the contract may be secured by a mortgage on the real property contained in a separate document. Home improvement retail sales transactions which are financed or insured by the Federal Housing Administration are not subject to ORS 83.010 to 83.190.

      (4) The contract shall be dated, signed by the retail buyer and completed as to all essential provisions, except as otherwise provided in ORS 83.050 and 83.060. The printed or typed portion of the contract, other than instructions for completion, shall be in a size equal to at least 8-point type. [1963 c.489 §2]

 

      83.030 Contents of contract. The retail installment contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or other address of the buyer as specified by the buyer and a description or identification of the goods sold or to be sold, or services furnished or rendered or to be furnished or rendered. The contract also shall contain the following items, which shall be set forth in the sequence appearing below; however, additional items may be included to explain the calculations involved in determining the balance to be paid by the buyer:

      (1) The cash sale price of each item of goods or services;

      (2) The amount of the buyer’s down payment, identifying the amounts paid in money and allowed for goods traded in;

      (3) The difference between subsections (1) and (2) of this section;

      (4) The aggregate amount, if any, included for insurance, specifying the type or types of insurance and the terms of coverage;

      (5) The aggregate amount of official fees;

      (6) The principal balance, which is the sum of subsections (3), (4) and (5) of this section;

      (7) The dollar amount or rate of the service charge;

      (8) The amount of the time balance owed by the buyer to the seller, which is the sum of subsections (6) and (7) of this section, if subsection (7) is stated in a dollar amount; and

      (9) The maximum number of installment payments required, the amount of each installment and the due date of each payment necessary to pay such balance. However, if installment payments other than the final payment are stated as a series of equal scheduled amounts and if the amount of the final installment payment does not substantially exceed the scheduled amount of each preceding installment payment, the maximum number of payments and the amount and due date of each payment need not be separately stated and the amount of the scheduled final installment payment may be stated as the remaining unpaid balance. The due date of the first installment payment may be fixed by a day or date or may be fixed by reference to the date of the contract or to the time of delivery or installation. [1963 c.489 §4]

 

      83.040 Subsequent purchases under original contract. A retail installment contract may be contained in more than one document, provided that one such document shall be an original document signed by the retail buyer, stated to be applicable to purchases of goods or services to be made by the retail buyer from time to time. In such case such document, together with the sales slip, account book or other written statement relating to each purchase, shall set forth all of the information required by ORS 83.030 and shall constitute the retail installment contract for each purchase. On each succeeding purchase pursuant to such original document, the sales slip, account book or other written statement may at the option of the seller constitute the memorandum required by ORS 83.140. [1963 c.489 §5]

 

      83.050 Contracts completed by mail and based on catalog of seller. (1) Retail installment contracts negotiated and entered into by mail without personal solicitation by salesmen or other representatives of the seller and based upon a catalog of the seller, or other printed solicitation of business, if such catalog or other printed solicitation clearly sets forth the cash sale prices and other terms of sales to be made through such medium, may be made as provided in this section. The provisions of ORS 83.010 to 83.190 with respect to retail installment contracts shall be applicable to such sales, except that the retail installment contract, when completed by the buyer need not contain the items required by ORS 83.030.

      (2) When the contract is received from the retail buyer, the seller shall prepare a written memorandum containing all of the information required by ORS 83.030 to be included in a retail installment contract. In lieu of delivering a copy of the contract to the retail buyer as provided in ORS 83.070, the seller shall deliver to the buyer a copy of such memorandum prior to the due date of the first installment payable under the contract. However, if the catalog or other printed solicitation does not set forth all of the other terms of sales in addition to the cash sale prices, such memorandum shall be delivered to the buyer prior to or at the time of delivery of the goods or services. [1963 c.489 §6]

 

      83.060 Filling blanks. The seller shall not obtain the signature of the buyer to any contract when it contains blank spaces of items which are essential provisions of the transaction except as provided in ORS 83.050. However, if delivery of the goods is not made at the time of the execution of the contract, the identifying numbers or marks of the goods or similar information and the due date of the first installment may be inserted by the seller in the seller’s counterpart of the contract after it has been signed by the buyer. [1963 c.489 §7]

 

      83.070 Delivery of copy of contract to buyer. The retail seller shall deliver to the retail buyer, or mail to the retail buyer at the address shown on the retail installment contract, a copy of the contract as accepted by the seller. Until the seller does so, the buyer shall be obligated to pay only the cash sale price. Any acknowledgment by the buyer of delivery of a copy of the contract shall be in a size equal to at least 10-point bold type and, if contained in the contract, shall appear directly above the buyer’s signature. [1963 c.489 §3]

 

      83.080 Informing buyer of service charge and right to prepay; monthly statement. (1) At or prior to the time a retail charge agreement is made the seller shall advise the buyer in writing, on the application form or otherwise, or orally, that a service charge will be computed on the outstanding balance for each month (which need not be a calendar month) or other regular period agreed upon, the schedule or rate by which the service charge will be computed, and that the buyer may at any time pay the total unpaid balance. If this information is given orally, the seller shall, upon approval of the buyer’s credit, deliver to the buyer or mail to the buyer at the address of the buyer, a memorandum setting forth this information.

      (2) The seller or holder of a retail charge agreement shall promptly supply the buyer with a statement as of the end of each monthly period (which need not be a calendar month) or other regular period agreed upon, in which there is any unpaid balance thereunder, which statement shall set forth the following:

      (a) The unpaid balance under the retail charge agreement at the beginning and at the end of the period;

      (b) Unless otherwise furnished by the seller to the buyer by sales slip, memorandum, or otherwise, a description or identification of the goods or services purchased during the period, the cash sale price and the date of each purchase;

      (c) The payments made by the buyer to the seller and any other credits to the buyer during the period;

      (d) The amount, if any, of any service charge for such period; and

      (e) A legend to the effect that the buyer may at any time pay the total unpaid balance. [1963 c.489 §12]

 

      83.090 Service charge; other fees. The service charge shall be inclusive of all charges incident to investigating and making the retail installment contract or charge agreement and for the privilege of making the installment payments thereunder and no other fee, expense or charge whatsoever shall be taken, received, reserved or contracted therefor. [1963 c.489 §13]

 

      83.095 Service charge computed by actuarial method. (1) Notwithstanding any other provision of ORS 83.010 to 83.190 and 83.820 to 83.895, a retail seller in a retail installment contract may contract for and charge, receive and collect a service charge computed by the actuarial method.

      (2) When a retail installment contract provides for a service charge computed by the actuarial method:

      (a) The retail installment contract may provide for any other charge, cost or fee allowed under ORS 83.010 to 83.190 and 83.820 to 83.895, in addition to the service charge.

      (b) The amount to be disclosed as the service charge and used as the service charge component of the other amounts disclosed pursuant to ORS 83.010 to 83.190 and 83.820 to 83.895 shall be the amount of the service charge to be paid assuming all payments are made exactly as agreed.

      (c) The refund credit provisions of ORS 83.130 shall not apply. [1983 c.432 §4]

 

      83.100 Extra charges; miscellaneous provisions of contract. (1) Except as provided in ORS 20.082, the holder of any retail installment contract or retail charge agreement may not collect any delinquency or collection charges, including any attorney’s fee and court costs and disbursements, unless the contract or charge agreement so provides. In such cases, the charges shall be reasonable, and no attorney’s fee may be recovered unless the contract or charge agreement is referred for collection to an attorney not a salaried employee of the holder.

      (2) The contract or charge agreement may contain other provisions not inconsistent with the purposes of ORS 83.010 to 83.190, including but not limited to provisions relating to refinancing, transfer of the buyer’s equity, construction permits and title reports. [1963 c.489 §9; 2001 c.542 §7]

 

      83.110 Insurance. (1) If the cost of any insurance is included in the retail installment contract or retail charge agreement:

      (a) The contract or agreement shall state the nature, purpose, term and amount of such insurance.

      (b) The contract or agreement shall state whether the insurance is to be procured by the buyer or the seller.

      (c) The amount included for such insurance shall not exceed the premiums chargeable in accordance with the rate fixed for such insurance by the insurer, except where the amount is less than $1.

      (2) Except as provided in ORS 743.377, if the insurance is to be procured by the seller or holder, the seller or holder shall, within 45 days after delivery of the goods or furnishing of the services under the contract, deliver, mail or cause to be mailed to the buyer, at the address as specified in the contract, a notice thereof or a copy of the policy or policies of insurance or a certificate or certificates of the insurance so procured. [1963 c.489 §14; 1967 c.359 §676]

 

      83.120 Receipts; schedule of payments. A buyer shall be given a written receipt for any payment when made in cash. Upon written request of the buyer, the holder of a retail installment contract shall give or forward to the buyer a written statement of the dates and amounts of payments and the total amount unpaid under the contract. Such a statement shall be given the buyer once without charge. If any additional statement is requested by the buyer, it shall be supplied by the holder at a charge not in excess of $1 for each additional statement so supplied. [1963 c.489 §10]

 

      83.130 Voluntary prepayment by buyer; refund. (1) Notwithstanding the provisions of any retail installment contract to the contrary, and if the rights of the purchaser have not been terminated or forfeited under the terms of the contract, any buyer may prepay in full the unpaid time balance thereof at any time before its final due date. If the buyer does so, and if the contract is not in default more than two months under any term or condition of the contract, the buyer shall receive a refund credit of the unearned portion of the service charge for the prepayment. The amount of the refund credit shall be not less than the total service charge contracted for to maturity, less the greater of:

      (a) Ten percent of the amount financed or $75, whichever is less; or

      (b) Either of the following, at the discretion of the seller or holder:

      (A) The service charge earned to the date of prepayment, computed by applying the effective rate on the contract to the actual principal balances outstanding, for the periods of time the balances were actually outstanding. In determining the effective rate, the holder may apply to the scheduled payments the actuarial method by which each scheduled payment is applied first to the accrued and unpaid service charges and any amount remaining is applied to the reduction of the principal balance.

      (B) The service charge earned to the installment due date nearest the date of prepayment, computed by applying the effective rate on the contract to the actual principal balances outstanding, for the periods of time the balances were actually outstanding. For purposes of rebate computations under this subparagraph, the installment due date preceding the date of prepayment shall be considered to be nearest if prepayment occurs 15 days or less after that installment date. If prepayment occurs more than 15 days after the preceding installment due date, the next succeeding installment due date shall be considered to be nearest to the date of prepayment. In determining the effective rate, the seller may apply to the scheduled payments the actuarial method, by which each scheduled payment is applied first to the accrued and unpaid service charges and any amount remaining is applied to reduction of the principal balance.

      (2) When the amount of the refund credit is less than $2, no refund need be made. [1963 c.489 §8; 1981 c.910 §1; 1983 c.432 §1]

 

      83.140 Consolidation of purchases with prior contract. (1) If, in a retail installment transaction, a retail buyer makes any subsequent purchases of goods or services from a retail seller from whom the buyer has previously purchased goods or services under one or more retail installment contracts, and the amounts under such previous contract or contracts have not been fully paid, the subsequent purchases may, at the seller’s option, be included in and consolidated with one or more of the previous contracts. All the provisions of ORS 83.010 to 83.190 with respect to retail installment contracts shall be applicable to such subsequent purchases except as otherwise provided in this subsection. In the event of such consolidation, in lieu of the buyer’s executing a retail installment contract respecting each subsequent purchase, as provided in this section, it shall be sufficient if the seller shall prepare a written memorandum of each such subsequent purchase, in which case the provisions of ORS 83.020, 83.030 and 83.070 shall not be applicable. Unless previously furnished in writing to the buyer by the seller, by sales slip, memorandum or otherwise, such memorandum shall set forth, with respect to each subsequent purchase, items required in ORS 83.030 (1) to (7), and in addition, the amount of the time balance owed by the buyer to the seller for the subsequent purchase, the outstanding balance of the previous contract or contracts, the consolidated time balance, and the revised installments applicable to the consolidated time balance, if any, in accordance with ORS 83.030. The seller shall deliver to the buyer a copy of such memorandum prior to the due date of the first installment of such consolidated contract.

      (2) When such subsequent purchases are made, if the seller has retained title or taken a lien or other security interest in any of the goods purchased under any one of the contracts included in the consolidation:

      (a) The entire amount of all payments made prior to such subsequent purchases shall be deemed to have been applied on the previous purchases; and

      (b) The amount of any down payment on the subsequent purchase shall be allocated in its entirety to such subsequent purchase.

      (3) The provisions of subsection (2) of this section shall not apply to cases where such previous and subsequent purchases involve equipment, parts or other goods attached or affixed to goods previously purchased and not fully paid, or to services in connection therewith rendered by the seller at the buyer’s request. [1963 c.489 §11]

 

      83.150 Unenforceable contract provisions. No provision of a retail installment contract or retail charge agreement shall be valid:

      (1) By which the buyer agrees not to assert against the seller or against an assignee a claim or defense arising out of the sale.

      (2) That provides for a wage assignment. [1963 c.489 §15; 1971 c.232 §1]

 

      83.160 Waiver of ORS 83.010 to 83.190. No act or agreement of the retail buyer before or at the time of the making of a retail installment contract, retail charge agreement or purchases thereunder shall constitute a valid waiver of any of the provisions of ORS 83.010 to 83.190 or of any remedies granted to the buyer by law. [1963 c.489 §16]

 

      83.170 Effect of violation of ORS 83.010 to 83.190 by seller. Any seller who enters into any contract or agreement which does not comply with the provisions of ORS 83.010 to 83.190 or who violates any provision of ORS 83.010 to 83.190 except as a result of an accidental or bona fide error shall be barred from the recovery of any service charge, official fees or any delinquency or collection charge under or in connection with the related retail installment contract or purchases under a retail charge agreement; but the seller may nevertheless recover from the buyer an amount equal to the cash price of the goods or services and the cost to the seller of any insurance included in the transaction. [1963 c.489 §18]

 

      83.180 Enforcement of ORS 83.010 to 83.190. The Attorney General of the State of Oregon or a district attorney may bring an action in the name of the state against any person to restrain and prevent any violation of ORS 83.010 to 83.190. [1963 c.489 §§19, 20; 1975 c.437 §6]

 

      83.190 Civil penalties. Any person who violates any order or injunction issued pursuant to ORS 83.010 to 83.190 shall forfeit and pay a civil penalty of not more than $1,000. For the purpose of this section the circuit court issuing any injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General acting in the name of the state may petition for the recovery of civil penalties. [1963 c.489 §21]

 

MOTOR VEHICLES; MOBILE HOMES

 

      83.510 Definitions for ORS 83.510 to 83.680. As used in ORS 83.510 to 83.680 except where the context otherwise requires:

      (1) “Cash sale price” means the price for which the motor vehicle dealer would sell to the buyer, and the buyer would buy from the motor vehicle dealer, the motor vehicle that is covered by the retail installment contract, if the sale were a sale for cash instead of a retail installment sale. The cash sale price may include any taxes, registration, license and other fees and charges for accessories and their installation and for delivering, servicing, repairing or improving the motor vehicle.

      (2) “Finance charge” means that part of the time sale price that exceeds the aggregate of the cash sale price, the amounts, if any, included in a retail installment sale for insurance and other benefits, and official fees.

      (3)(a) “Financing agency” means a person engaged, in whole or in part, in purchasing or otherwise acquiring retail installment contracts or retail lease agreements from one or more motor vehicle dealers or retail lessors. “Financing agency” includes, but is not limited to, financial institutions, as defined in ORS 706.008, and consumer credit companies, if so engaged. “Financing agency” also includes a motor vehicle dealer or retail lessor engaged, in whole or in part, in the business of holding retail installment contracts or retail lease agreements acquired from retail buyers or retail lessees.

      (b) “Financing agency” does not include the pledgee or other holder of more than one retail installment contract or retail lease agreement pledged or otherwise given by a motor vehicle dealer or a transferee from the motor vehicle dealer to a lender as collateral security for a loan made to the motor vehicle dealer or transferee of the motor vehicle dealer.

      (4) “Holder” of a retail installment contract or retail lease agreement means the motor vehicle dealer or retail lessor of the motor vehicle covered by the contract or lease or, if the contract or lease is purchased or otherwise acquired by a financing agency or other assignee, the financing agency or other assignee.

      (5) “Mobile home” means a structure, transportable in one or more sections, that is eight body feet or more in width and 32 body feet or more in length, and that is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities. “Mobile home” includes the plumbing, heating, air conditioning and electrical systems contained within the structure.

      (6)(a) “Motor vehicle” or “vehicle” means:

      (A) A self-propelled device used for transportation of person or property upon a public highway.

      (B) A trailer, semitrailer, mobile home or trailer home.

      (b) “Motor vehicle” or “vehicle” does not include tractors, power shovels, road machinery, agricultural machinery, boat trailers or other machinery not designed primarily for highway transportation, which may be used incidentally to transport persons or property on a public highway, or devices that move upon or are guided by a track or travel through the air.

      (7) “Motor vehicle dealer” means any person who sells, trades, leases, displays or offers for sale, trade, lease or exchange motor vehicles pursuant to a retail installment contract or retail lease agreement or who offers to negotiate or purchase motor vehicles on behalf of third parties pursuant to a retail installment contract or retail lease agreement.

      (8) “Official fees” means the filing or other fees required by law to be paid to a public officer to perfect the interest or lien, in or on a motor vehicle, retained or taken by a motor vehicle dealer under a retail installment contract or retail lease agreement, and to file or record a release, satisfaction or discharge of the contract.

      (9) “Person” means individual, partnership, corporation, association or other group, however organized.

      (10) “Retail buyer” or “buyer” means a person who buys a motor vehicle from a motor vehicle dealer and who executes a retail installment contract in connection therewith.

      (11) “Retail installment contract” or “contract” means an agreement, entered into in this state, pursuant to which the title to, the property in or a lien upon a motor vehicle, which is the subject matter of a retail installment sale, is retained or taken by a motor vehicle dealer from a retail buyer as security, in whole or in part, for the buyer’s obligation. “Retail installment contract” or “contract” includes a chattel mortgage, a conditional sales contract and a contract for the bailment or leasing of a motor vehicle by which the bailee or lessee contracts to pay as compensation for its use a sum substantially equivalent to or in excess of its value and by which it is agreed that the bailee or lessee is bound to become, or for no other or for a merely nominal consideration has the option of becoming, the owner of the motor vehicle upon full compliance with the terms of the contract.

      (12)(a) “Retail installment sale” or “sale” means a sale of a motor vehicle by a motor vehicle dealer to a retail buyer for a time sale price payable in one or more installments, payment of which is secured by a retail installment contract. “Retail installment sale” or “sale” includes a bailment or leasing as described in subsection (11) of this section.

      (b) “Retail installment sale” or “sale” does not include a sale of a motor vehicle for resale in the ordinary course of the buyer’s business.

      (13) “Retail lease” means a lease of a motor vehicle by a retail lessor to a retail lessee, payment of which is secured by a retail lease agreement. “Retail lease” does not include a lease that constitutes a retail installment contract.

      (14) “Retail lease agreement” means an agreement entered into in this state between a retail lessor and a retail lessee for the lease of a motor vehicle. The agreement shall be in the form of a bailment or lease for the use of a motor vehicle by an individual for personal, family or household purposes, whether or not the retail lessee has the option to purchase or otherwise become the owner of the motor vehicle at the expiration of the lease.

      (15) “Retail lessee” means a person who leases a motor vehicle from a retail lessor by entering into a retail lease agreement.

      (16) “Retail lessor” means a motor vehicle dealer who transfers an interest in or supplies a motor vehicle to a retail lessee, regardless of whether or not the motor vehicle dealer is identified as the retail lessor on the retail lease agreement.

      (17) “Time sale price” means the aggregate of the cash sale price of the motor vehicle, the amount, if any, included for insurance and other benefits, official fees and the finance charge. [1957 c.625 §1; 1979 c.304 §1; 1979 c.816 §1a; 1987 c.674 §1; 1997 c.631 §383; 2001 c.104 §25; 2001 c.117 §1]

 

      83.520 Form and contents of retail installment contract. (1) A retail installment contract shall be in writing, shall contain all the agreements of the parties, shall contain the names of the motor vehicle dealer and the buyer, the place of business of the motor vehicle dealer, the residence or place of business of the buyer as specified by the buyer and a description of the motor vehicle including its make, year model, model and identification numbers or marks, and shall be signed by the buyer and the motor vehicle dealer.

      (2) The printed portion of the contract shall be in at least 8-point type. The contract shall contain in printing or writing of a size equal to at least 10-point bold type, the following:

      (a) Both at the top of the contract and directly above the space reserved for the signature of the buyer, the words “RETAIL INSTALLMENT CONTRACT”;

      (b) A specific statement that liability insurance coverage for bodily injury and property damage caused to others is not included, if that is the case; and

      (c) The following notice:

______________________________________________________________________________

 

NOTICE TO THE BUYER

      Do not sign this contract before you read it or if it contains any blank space, except that:

      (1) If delivery of the motor vehicle or mobile home is to be made to you after this contract is signed, the serial number or other identifying information and the due date of the first installment may be filled in at the time of delivery; and

      (2) If the name of the financing agency is not known at the time the contract is executed, the name of the financing agency may be inserted in the contract on or about the date the name of the financing agency is known.

      You are entitled to a copy of this contract.

      You have the right to pay off in advance the full amount due and to obtain a partial refund of the finance charge.

______________________________________________________________________________

 

      (3) The contract shall contain the following items:

      (a) The cash sale price of the motor vehicle which is the subject matter of the retail installment sale.

      (b) The amount of the buyer’s down payment, itemizing the amounts, if any, paid or credited in money or in goods and containing a brief description of the goods traded in.

      (c) The difference between the items set forth in paragraphs (a) and (b) of this subsection.

      (d) The amount, if any, included for insurance and other benefits, specifying the coverages and benefits. For purposes of this paragraph, “other benefits” includes any amounts actually paid or to be paid by the motor vehicle dealer pursuant to an agreement with the buyer to discharge a security interest, lien or lease interest on property traded in.

      (e) The amount, if any, of official fees.

      (f) The principal balance, which is the sum of the items set forth in paragraphs (c), (d) and (e) of this subsection.

      (g) The amount of the finance charge.

      (h) The time balance, which is the sum of the items set forth in paragraphs (f) and (g) of this subsection.

      (i) The time sale price.

      (j) A plain and concise statement of the amount in dollars of each installment or future payment to be made by the buyer, the number of installments required, and the date or dates at which, or period or periods in which, the installments are due.

      (4) The contract may contain additional items to explain the calculations involved in determining the stated time balance to be paid by the buyer. [1957 c.625 §§2, 3, 5; 1979 c.816 §2; 1995 c.519 §3; 1999 c.525 §1; 2001 c.117 §5]

 

      83.530 Filling blanks. (1) Except as provided in subsection (2) of this section, a retail installment contract shall not be signed by any party to the contract when the contract contains blank spaces to be filled in after the contract is executed.

      (2) A retail installment contract may be signed by any party to the contract when the contract contains blank spaces to be filled in after the contract is executed under the following conditions:

      (a) If delivery of the motor vehicle is not made at the time of execution, the identifying numbers or marks of the motor vehicle or similar information and the due date of the first installment may be inserted in the contract on or about the date of delivery.

      (b) If the name of the financing agency is not known at the time the contract is executed, the name of the financing agency may be inserted in the contract on or about the date the name of the financing agency is known. [1957 c.625 §8; 1995 c.519 §4]

 

      83.540 Delivery of copy of contract to buyer. The motor vehicle dealer shall deliver to the buyer, or mail to the buyer at the address shown on the contract, a copy of the contract signed by the motor vehicle dealer. Until the motor vehicle dealer does so, a buyer who has not received delivery of the motor vehicle shall have an unconditional right to cancel the contract and to receive immediate refund of any amount paid and redelivery of all goods delivered or traded in to the motor vehicle dealer on account of or in contemplation of the contract. An acknowledgment by the buyer of delivery of a copy of the contract shall be printed or written in a size equal to at least 10-point bold type and, if contained in the contract, shall also appear directly above the legend required above the buyer’s signature by ORS 83.520 (2)(a). [1957 c.625 §4; 2001 c.117 §6]

 

      83.550 [1957 c.625 §8; repealed by 1961 c.458 §1]

 

      83.560 Finance charge. A motor vehicle dealer may, in a retail installment contract, contract for and charge, receive and collect a finance charge agreed upon by the motor vehicle dealer and buyer. [1957 c.625 §§19,20,21; 1979 c.816 §3; 1981 c.412 §2; 2001 c.117 §7]

 

      83.565 Finance charge computed by actuarial method; requirements; notice. (1) Notwithstanding any other provision of ORS 83.510 to 83.680 and 83.820 to 83.895, a motor vehicle dealer, in a retail installment contract, may contract for and charge, receive and collect a finance charge computed by the actuarial method.

      (2) When a retail installment contract provides for a finance charge computed by the actuarial method:

      (a) The retail installment contract may provide for any other charge, cost or fee allowed under ORS 83.510 to 83.680 and 83.820 to 83.895, in addition to the finance charge.

      (b) The amount to be disclosed as the finance charge and used as the finance charge component of the other amounts disclosed pursuant to ORS 83.510 to 83.680 and 83.820 to 83.895 shall be the amount of the finance charge to be paid assuming all payments are made exactly as agreed.

      (c) The retail installment contract for the sale of a mobile home may provide that the holder may refuse to accept prepayments of less than the entire amount owed under the retail installment contract if the prepayments:

      (A) Are tendered on dates other than a specified date each month; and

      (B) Are not in amounts equal to the principal portion of one or more of the earliest unmatured monthly installments.

      (d) The contract shall contain the following notice in printing or writing of a size equal to at least 10-point bold type, in lieu of the notice required by ORS 83.520 (2)(c):

______________________________________________________________________________

 

NOTICE TO THE BUYER

      Do not sign this contract before you read it or if it contains any blank space, except that:

      (1) If delivery of the motor vehicle or mobile home is to be made to you after this contract is signed, the serial number or other identifying information and the due date of the first installment may be filled in at the time of delivery; and

      (2) If the name of the financing agency is not known at the time the contract is executed, the name of the financing agency may be inserted in the contract on or about the date the name of the financing agency is known.

      You are entitled to a copy of this contract.

      You have the right to pay in advance the full amount due and if you do so you may save a portion of the finance charge.

______________________________________________________________________________

 

      (e) The refund credit provisions of ORS 83.620 shall not apply. [1981 c.910 §4; 1995 c.519 §5; 2001 c.117 §8]

 

      83.570 [1957 c.625 §22; repealed by 1981 c.412 §24]

 

      83.580 Insurance. (1) The amount, if any, included for automobile insurance, shall not exceed the premiums chargeable in accordance with rate filings made by the insurer with the Director of the Department of Consumer and Business Services for such insurance.

      (2) The amount, if any, included for life, health and accident or other insurance, other than automobile insurance, shall not exceed the premiums charged by the insurer.

      (3) Except as provided in ORS 743.377, the motor vehicle dealer or financing agency, if an amount for automobile or other insurance on the motor vehicle is included in a retail installment contract, shall within 30 days after execution of the retail installment contract send or cause to be sent to the buyer a policy or policies or certificate of insurance, written by an insurance company authorized to do business in this state, clearly setting forth the amount of the premium, the kind or kinds of insurance and the scope of the coverage and all the terms, exceptions, limitations, restrictions and conditions of the contract or contracts of insurance. The buyer of a motor vehicle under a retail installment contract shall have the privilege of purchasing such insurance from an insurance producer of the selection of the buyer and of selecting an insurance company acceptable to the motor vehicle dealer; provided, however, that the inclusion of the insurance premium in the retail installment contract when the buyer selects the insurance producer or company, shall be optional with the motor vehicle dealer and in such case the motor vehicle dealer or financing agency shall have no obligation to send, or cause to be sent, to the buyer the policy or certificate of insurance.

      (4) If an insurance policy or certificate that was obtained for an amount included in the retail installment contract is canceled, the unearned insurance premium refund received by the holder of the contract shall be credited to the last maturing installments of the retail installment contract except to the extent applied toward payment for similar insurance protecting the interests of the buyer or of the buyer and the holder of the contract. [1957 c.625 §6; 1967 c.359 §677; 2001 c.117 §9; 2003 c.364 §48]

 

      83.590 Delinquency and collection charges. The holder of a retail installment contract, if the contract so provides, may collect a delinquency charge on each installment in default for a period of 10 days or longer. The delinquency charge for any installment shall not exceed five percent of the delinquent installment. In addition to the delinquency charge, the retail installment contract may provide for the payment of reasonable collection costs. The collection costs may include the payment of reasonable attorney fees, if the contract is referred to an attorney not a salaried employee of the holder of the contract for collection, plus the court costs and disbursements. [1957 c.625 §7; 1981 c.552 §1]

 

      83.600 Schedule of payments; receipts. Upon written request from the buyer, the holder of a retail installment contract shall give or forward to the buyer a written statement of the dates and amounts of payments made and the total amount unpaid on the contract. A buyer shall be given a written receipt for any payment when made in cash. [1957 c.625 §12]

 

      83.610 Delivery to buyer of instrument indicating full payment; release of security. After the payment of all sums for which the buyer is obligated under a retail installment contract or other security agreement, as defined in ORS 79.0102, and upon written demand made by the buyer, the holder of such contract or agreement shall mail to the buyer at the buyer’s last-known address, good and sufficient instruments to indicate payment in full and to release all security in the motor vehicle. This section is supplementary to and is not restrictive of ORS 86.440, 86.460 and 803.097 or of ORS chapter 79. [1957 c.625 §23; 1961 c.726 §400; 1983 c.338 §880; 1989 c.148 §5; 2001 c.445 §161]

 

      83.620 Voluntary prepayment by buyer; refund. (1) Notwithstanding the provisions of a retail installment contract to the contrary, the buyer may pay in full at any time before maturity the obligation contained in the retail installment contract. Upon the premature payment, the buyer shall receive a refund credit. The amount of the refund credit shall not be less than the total finance charge to maturity provided for in the contract, less the greater of:

      (a) Ten percent of the amount financed or $75, whichever is less; or

      (b) Either of the following, at the discretion of the motor vehicle dealer or holder:

      (A) The finance charge earned to the date of prepayment, computed by applying the effective rate on the contract to the actual principal balances outstanding, for the periods of time such balances were actually outstanding. In determining the effective rate, the holder may apply