Arkansas Code of 1987 (2023)
Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105)
Subtitle 7 - CONSUMER PROTECTION (§§ 4-86-101 — 4-119-105)
Chapter 90 - AUTOMOBILES (§§ 4-90-201 — 4-90-808)
Subchapter 7 - DEBT CANCELLATION AGREEMENTS (§§ 4-90-701 — 4-90-705)
Section 4-90-701 - Definition
As used in this subchapter, "debt cancellation agreement" means a loan term or contractual arrangement modifying a loan term dealing with motor vehicles under which a lender agrees to cancel all or part of a borrower's obligation to repay an extension of credit from the lender upon the occurrence of a specified event other than the death or disability of the borrower, whether or not separate from or a part of other loan documents. Provided, however, for purposes of this subchapter only, the term "debt cancellation agreement" shall not include that form of debt cancellation agreement which constitutes a guaranteed automobile protection waiver agreement or "GAP" waiver agreement. A guaranteed automobile protection waiver agreement or "GAP" waiver agreement means a loan term or a contractual arrangement modifying a loan term dealing with motor vehicles under which a lender agrees to waive, cancel, pay, or satisfy any remaining balance owed on a loan after a total loss or theft of the vehicle.
Acts 2007, No. 496, § 22.