N.H. Rev. Stat. § 361-A:16 — NH Code / Title XXXIII-A / Chapter 361-A / Section 16
361-A:16 Requirements and Prohibitions as to Retail Installment Contracts; Direct Loans.
Status: in_force

I. A contract shall be in writing, shall be signed and dated by the buyer and the sales finance company; and shall be completed as to all essential provisions or by memorandum as provided in paragraphs VI and V prior to the signing of the contract by the buyer. II. The printed portion of the contract, other than instructions for completion, shall be in at least 8-point type. The contract shall contain in a size equal to at least 10-point bold type: 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 the following notice: "Notice to the Buyer: 1. Read this contract before signing. 2. You are entitled to an exact copy of the contract you sign." III. The contract shall contain: (a) The names of the sales finance company and the buyer; (b) The place of business of the sales finance company; (c) The legal residence or place of business of the buyer as specified by the buyer; and (d) A description of the motor vehicle including its make, year, model and identification numbers or marks, or the sales finance company shall retain in the loan file a copy of the purchase and sale agreement between the buyer and the seller that contains a description of the motor vehicle that is substantially similar to the description. IV. The contract shall contain the following calculation: (a) The cash sale price of the motor vehicle or amount paid to the previous lienholder if a refinance; (b) The amount of the borrower's down payment, and whether made in money or goods, or partly in money and partly in goods; (c) The difference between items (a) and (b); (d) The description and the amounts paid to others on the borrower's behalf, including amounts paid on traded-in property, title fees, insurance, guaranteed asset protection waiver, or other benefits; (e) The amount, if any, paid to the borrower; (f) The amount financed, which is the sum of (c), (d), and (e); (g) The description and amounts, if any, of prepaid finances charges; (h) The total of prepaid finance charges; (i) The principal balance of the loan, which is the sum of (f) and (h); and (j) The time balance, payable in installments by the borrower, the number of installments, the amount of each installment and the due date or period thereof. IV-a. The subparagraphs in paragraph IV need not be stated in the sequence or order set forth. Additional paragraphs may be included to explain the calculations involved in determining the stated time balance to be paid by the buyer. V. The sales finance company shall deliver to the buyer, or mail to the buyer at the address shown on the contract, a copy of the signed contract. Until a buyer has received delivery of the motor vehicle and a copy of the signed contract, the buyer shall have the right to rescind the agreement 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 or delivery of the vehicle 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. VI. The amount, if any, included for insurance, which may be purchased by or protects the holder of the retail installment contract, shall not exceed the applicable premiums chargeable in accordance with the rates filed with the insurance commissioner. If dual interest insurance on the motor vehicle is purchased by the holder, the holder 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, the coverages and all the terms, exceptions, limitations, restrictions and conditions of the contract or contracts of insurance. The buyer shall have the privilege of purchasing insurance from an agent or broker of the buyer's own selection authorized by the insurance commissioner to do business in the state, but in such case the inclusion of the dual interest insurance premium in the retail installment contract shall be optional with the seller. VII. The holder may, if the contract so provides, collect a single delinquency and collection charge on each installment in default for a period not less than 10 days in an amount not in excess of 5 percent of the installment in default. In addition to such delinquency and collection charge, the contract may provide for the payment of reasonable attorneys' fees where such contract is referred for collection to an attorney not a salaried employee of the holder of the contract plus the court costs and the financier's out-of-pocket collection expenses. The pyramiding of delinquency or the collection of unfair late charges as prohibited. VIII. The following provisions are prohibited in retail installment contracts and any separately executed instrument in connection therewith, and shall not be enforceable: (a) Any provision for confession of judgment, power of attorney therefor, or wage assignment; (b) Any provision for the subsequent inclusion of title to or lien upon any goods, other than the motor vehicle which is the subject matter of the retail installment sale or accessories therefor or special or auxiliary equipment used in connection therewith, or in substitution, in whole or in part, for any such accessory or special or auxiliary equipment, as security for payment of the total time price; (c) Any provision whereby, in the absence of the buyer's default, the holder may accelerate the maturity of any part of all of the time balance; (d) Any provision whereby a seller or holder of the contract, or other person acting on his or her behalf, is authorized to enter the buyer's premises unlawfully, or to commit any breach of the peace in the repossession of a motor vehicle; (e) Any provision whereby the buyer waives any right of action against the seller or holder of the contract, or other person acting on his or her behalf, for any illegal act committed in the collection of payments under the contract or in the repossession of the motor vehicle; (f) Any provision whereby the buyer executes a power of attorney appointing the seller or holder of the contract, or other person acting on his behalf, as the buyer's agent in the collection of payments under the contract or in the repossession of the motor vehicle; (g) Any provision whereby the seller is relieved from liability for any legal remedies which the buyer may have had against the seller under the contract, or any separate instrument executed in connection therewith, shall not be enforceable; (h) Any provision permitting the holder to waive the buyer's right to notice of default; (i) Any provision permitting the holder to accelerate the principal balance under the contract for default for any cause other than: (1) Non-payment of any amount due under the terms of the contract. (2) Failure to insure the vehicle which secures the contract against loss, if such insurance is required by the terms of the contract. Provided, however, that the holder may not accelerate the principal balance solely as a result of the failure to insure until the holder gives the buyer written notice conspicuously stating that the buyer has the opportunity to cure the default under this subparagraph by submitting proof of insurance to the holder within 15 days of the mailing of the notice. If no proof of insurance is submitted to the holder within 15 days of mailing of notice, the holder may accelerate the principal balance. This subparagraph shall not apply if the contract obligates the holder to purchase such insurance and collect the premiums for the insurance from the buyer. (3) Removal of the collateral from the United States or Canada without the holder's permission. (4) Sale, rental, lease, or other transfer of an interest in the collateral without the holder's permission. (5) Commencement of a proceeding in bankruptcy by or against the buyer. (6) Other significant impairment of the realization of the collateral, limited to seizure of the vehicle by law enforcement officials, encumbrance of the vehicle, abandonment of the vehicle, or loss, theft, or destruction of the vehicle that is not covered by insurance. (j) Any provisions permitting the holder to: (1) Declare the note in default prior to 10 days following failure to make any installment payment due; (2) Add any charge for vehicle repairs to the principal balance of the contract after the contract has been executed; or (3) Assess a prepayment penalty on a contract with a term of less than 6 years. (k) A clause permitting the continuation of interest after repossession of the borrower's motor vehicle. (l) Any provision under which a buyer waives any right, benefit, or privilege which is conferred upon the buyer under this chapter. IX. The retail installment contract shall include a notice, printed in type size equal to at least 10-point type, stating that the consumer may file a complaint with the commissioner along with the department's contact information. X. Paragraphs I and IV shall not apply to federally chartered banks, savings banks, trust companies, credit unions, cooperative banks, or industrial banks which do not act as sellers, but provide direct loans to retail buyers and supply a disclosure statement in conformity with Federal Reserve Board Regulation Z, Truth-in-Lending, 12 C.F.R. 1026, as amended from time to time.