NY Pers Prop L § 302A (2021)
2021 New York Laws PEP - Personal Property Article 9 - Motor Vehicle Retail Instalment Sales Act 302A - Total Loss Notice and Waiver of the Gap Amount.

§  302A.  Total  loss  notice  and waiver of the gap amount. 1. If the   retail instalment contract provides that the buyer shall be  responsible   upon  a  total loss of the vehicle occasioned by its theft, confiscation   or physical damage for the gap amount as defined in paragraph  fifty-two   of subsection (a) of section one hundred seven of the insurance law, the   holder,  prior  to the execution of the contract, shall by a notice on a   separate document conspicuously disclose that fact and  the  obligations   for  which  the  buyer  would  remain  liable  in  the event of a theft,   confiscation or total loss of the vehicle. If  the  holder  is  required   under  subdivision two of this section to offer to waive its contractual   right to hold the buyer liable for the gap amount  in  the  event  of  a   total  loss  of  the vehicle occasioned by its theft or physical damage,   the notice shall also: (a) state that for a separate charge disclosed in   the notice the holder will waive its contractual right to hold the buyer   liable for the gap amount in the event of a total loss  of  the  vehicle   occasioned  by  its  theft  or  physical damage; (b) contain a provision   informing the buyer that he or she may, as an alternative to  purchasing   a  waiver, be able to purchase insurance covering the gap amount from an   insurance company which has  been  licensed  by  the  superintendent  of   financial  services  to write motor vehicle debtor gap insurance in this   state; and (c) contain a provision  permitting  the  buyer  to  indicate   whether  he  or  she  wants the holder to waive its contractual right to   hold the buyer liable for the gap amount in the event of a total loss of   the vehicle occasioned by its theft or physical damage. The notice shall   be signed by the buyer. The holder shall provide a copy  of  the  signed   notice  to the buyer and shall maintain a copy in the holder's files for   at least the term of the contract. Failure to provide the notice and  to   obtain  the  buyer's  signature  as  required  by this subdivision shall   invalidate any provision of the agreement which otherwise would obligate   a buyer to pay to the holder, after a total loss of  the  motor  vehicle   occasioned  by  its  theft,  confiscation  or  physical  damage, the gap   amount. No retail installment contract shall  be  conditioned  upon  the   buyer's  obtaining of motor vehicle debtor gap insurance as set forth in   subparagraph (B) of paragraph twenty-six of subsection  (a)  of  section   one thousand one hundred thirteen of the insurance law.2.  If the retail instalment contract provides that the buyer shall be   responsible upon a total loss of the vehicle occasioned by its theft  or   physical  damage  for the gap amount, the holder, prior to the execution   of the agreement, shall offer to waive its contractual right to hold the   buyer liable for the gap amount in the event of  a  total  loss  of  the   vehicle  occasioned  by  its  theft  or  physical  damage, only if motor   vehicle creditor gap insurance coverage is available to the  holder  and   such  coverage  is  obtained from a property/casualty insurance company,   which has been licensed by the superintendent of financial  services  of   this  state to write motor vehicle creditor gap insurance in this state.   This offer may be made contingent upon the payment by  the  buyer  of  a   separate charge that shall not exceed the cost of motor vehicle creditor   gap insurance covering the retail instalment contract. Nothing contained   in  this section shall be construed to authorize a waiver, in connection   with a transaction with respect to  which  motor  vehicle  creditor  gap   insurance  has  not  been  obtained,  of a contractual right to hold the   buyer liable for the gap amount in the event of  a  total  loss  of  the   vehicle occasioned by its theft or physical damage.3.  A  holder  shall  not  be  obligated under subdivision two of this   section to offer to waive its contractual right to hold the buyer liable   for the gap amount if, during the current calendar year  or  during  the   odd-numbered  calendar  year  immediately preceding the calendar year in   which the agreement is entered  into,  the  holder  has  received  motor    vehicle  creditor gap insurance declination notices or other evidence of   unavailability from every insurance company whose name  appears  on  the   department  of  financial  services  compilation  of insurance companies   which  during  that calendar year were authorized to write motor vehicle   creditor gap insurance in this state.  Evidence  of  these  declinations   shall  be retained by such a holder of such a holder for a period of six   years after the expiration of the  calendar  year  in  which  they  were   issued.4. In order to enable holders or their anticipated assignees to comply   with  the  requirements  imposed by subdivision two of this section, the   superintendent of financial services shall compile and make available  a   periodically  updated  list  of  those  insurance  companies  which  are   authorized to write motor vehicle creditor  gap  insurance  coverage  in   this state.5.  Nothing in this section shall be construed to apply to the holder,   under a retail instalment contract under which the buyer is  not  liable   upon  a  total loss of the vehicle occasioned by its theft, confiscation   or physical damage for the gap amount.