KRS § 371.220 — KY Code / Title XXX / Chapter 371 / Section 371.220
371.220 Requisites of retail installment contract
Status: in_force

371.220 Requisites of retail installment contract.

(1) Each retail installment contract shall be in writing, dated, signed by the retail buyer,

and completed as to all essential provisions, except as otherwise provided in KRS

371.250.

(2) The printed or typed portion of the contract, other than instructions for completion,

shall be in a size equal to at least eight (8) point type. The contract shall be

designated "Retail Installment Contract" and shall contain substantially the

following notice printed or typed in a size equal to at least ten (10) point bold type:

"NOTICE TO THE BUYER. DO NOT SIGN THIS CONTRACT BEFORE YOU

READ IT OR IF IT CONTAINS BLANK SPACES. YOU ARE ENTITLED TO A

COPY OF THE CONTRACT YOU SIGN."

(3) The retail seller shall deliver to the retail buyer, or mail to him at his address shown

on the retail installment contract, a copy of the contract as accepted by the seller.

Until the seller does so, a buyer, who has not received delivery of the goods or been

furnished or rendered the services, shall have the right to rescind his contract and to

receive a refund of all payments made and return of all goods traded in to the seller

on account of or in contemplation of the contract, or if such goods cannot be

returned, the value thereof. Any acknowledgment by the buyer of delivery of a copy

of the contract shall be in a size equal to at least ten (10) point bold type and, if

contained in the contract, shall appear directly above the buyer's signature.

(4) 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.

(5) The retail installment contract shall contain the following items:

(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 of the time price differential; and

(h) The amount of the time balance owed by the buyer to the seller, which is the

sum of items (f) and (g) and, except as otherwise provided in the next two (2)

sentences, the maximum number of installment payments required and the

amount of each installment and the due date of each payment necessary to pay

such balance. 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.

The above items need not be stated in the sequence or order set forth; additional

items may be included to explain the computations made in determining the amount

to be paid by the buyer.