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371.290 Consolidation of subsequent purchases with existing contract -Memorandum -- Allocation of payments.
(1)
(2)
(3)
(4)
If, in a retail installment transaction, a retail buyer makes any subsequent
purchases of goods or services from a retail seller from whom he 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 contract or
contracts. Each subsequent purchase shall be a separate retail installment
contract under KRS 371.210 to 371.330, notwithstanding that the same may be
included in and consolidated with one or more of such previous contract or
contracts. All the provisions of KRS 371.210 to 371.330 with respect to retail
installment contracts shall be applicable to such subsequent purchases except
as stated in subsections (2) to (7) of this section.
In the event of such consolidation, in lieu of the buyer's executing a retail
installment contract respecting each subsequent purchase, as provided in KRS
371.220 to 371.290, it shall be sufficient if the seller shall prepare a written
memorandum of each subsequent purchase, in which case the provisions of
subsections (1), (2), (3), and (4) of KRS 371.220 shall not be applicable.
Unless previously furnished in writing to the buyer by the seller, by sales slip,
memoranda, or otherwise, such memorandum shall set forth with respect to
each subsequent purchase the following:
(a) The cash sale price of the goods or services;
(b) The amount of the buyer's down payment, identifying the amounts paid in
money and allowed for goods traded in;
(c) The difference between items (a) and (b);
(d) The aggregate amount, if any, included for insurance, if a separate
identified charge is made therefor, specifying the type or types of
insurance and the term or terms of coverage;
(e) The aggregate amount of official fees;
(f) The principal balance, which is the sum of items (c), (d), and (e);
(g) The amount or rate of the time price differential;
(h) The amount of the time balance owed by the buyer to the seller, which is
the sum of items (f) and (g);
(i) The outstanding balance of the previous contract or contracts;
(j) The consolidated time balance, which is the sum of items (h) and (i);
(k) The revised installments applicable to the consolidated time balance, if
any.
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.
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.
The entire amount of all payments made prior to such subsequent purchases
shall be deemed to have been applied on the previous purchases.
(5)
(6)
(7)
Each payment after such subsequent purchases made on this consolidated
contract shall be deemed to have been allocated to all of the various purchases
in the same ratio as the original cash sale prices of the various purchases bear
to the total of all.
Where the amount of each installment payment is increased in connection with
such subsequent purchases, at the seller's option, the subsequent payments
may be deemed to be allocated as follows: an amount equal to the original
periodic payment to the previous purchase, the balance to the subsequent
purchase. However, the amount of any down payment on the subsequent
purchase shall be allocated in its entirety to such subsequent purchase.
The provisions of subsections (3), (4), (5), and (6) 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.
History: Created 1962 Ky. Acts ch. 136, sec. 2(13).
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