2023 New Hampshire Revised Statutes › Title XXXIII-A - Retail Installment Sales › Chapter 361-A - Retail Installment Sales of Motor Vehicles › Section 361-A:7 - Requirements and Prohibitions as to Retail Installment Contracts.

361-A:7 Requirements and Prohibitions as to Retail Installment Contracts. –
I. (a) A retail installment contract shall be in writing, shall be signed by the buyer and (1) for direct loans, the sales finance company; or (2) for indirect loans, the seller and shall be completed as to all essential provisions or by memorandum as provided in paragraph VI prior to the signing of the contract by the buyer.
(b) 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."
(c) The seller shall, for an indirect loan, or the sales finance company shall, for a direct loan, deliver to the buyer, or mail to the buyer at the address shown on the contract, a copy of the signed contract. Until the seller or sales finance company does so, a buyer who has not received delivery of the motor vehicle 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 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.
(d) The contract shall contain the names of the seller and the buyer, if an indirect loan, or the names of the sales finance company and the buyer, if a direct loan, the place of business of the seller, if an indirect loan, or the sales finance company, if a direct loan, the legal residence or place of business of the buyer as specified by the buyer and, for an indirect loan, a description of the motor vehicle including its make, year, model and identification numbers or marks. For a direct loan, 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 required in the contract for an indirect loan.
II. The contract shall contain the following:
(a) The cash sale price of the motor vehicle;
(b) The amount of the buyer'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 amount, if any, included for insurance, guaranteed asset protection waiver, and other benefits, specifying the types of coverage and benefits, stating separately by rate or in terms of dollars the amount charged for credit sickness, accident and life insurance, whether issued under a group policy or not;
(e) The amount actually paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest, lien or lease interest on traded-in property;
(f) The amount of documentary fees;
(g) The principal balance, which is the sum of (c), (d), (e) and (f);
(h) The amount of the finance charge, and specification of the types of coverage and benefits for any insurance coverage or other benefits included therein, with the rate for credit sickness, accident and life insurance stated separately by rate or in terms of dollars, whether issued under a group policy or not;
(i) The time balance, which is the sum of (g) and (h), payable in installments by the buyer, the number of installments, the amount of each installment and the due date or period thereof.
The above subparagraphs in paragraph II 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.
III. 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.
IV. If any insurance is cancelled, unearned insurance premium refunds received by the holder shall be credited to the final maturing installments of the contract except to the extent applied toward payment for similar insurance protecting the interests of the buyer and the holder or either of them.
IV-a. If a retail installment contract is paid in full prior to maturity, then no later than 30 days after payment in full, the holder of the contract shall provide written notice of such payment to any insurance company that has issued an insurance contract the premium of which was financed as part of such retail installment contract. Such notice shall contain the date the retail installment contract was paid in full, the name and last known address of the buyer under the contract, and shall state that pursuant to RSA 361-A a refund by the insurer of any unused prepaid premium is due the buyer upon receipt of the notice. A copy of the notice shall be given to the buyer, or mailed to the buyer's last known address.
V. 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 in Federal Reserve Regulation AA, 12 C.F.R. 227.15, as amended from time to time, is prohibited.
VI. No retail installment contract shall be signed by any party thereto when it contains blank spaces to be filled in after it has been signed; except that, if delivery of the motor vehicle is not made at the time of the execution of the contract, the identifying numbers or marks of the motor vehicle or similar information, and the due date of the first installment, may be inserted in the contract after its execution; and except that said contract may be so signed provided the buyer is given at the time of such execution a bill of sale, invoice or similar memorandum clearly indicating the sales price, down payment, type or types of insurance coverage and the number, period and amount of payments; and provided said contract when completed conforms with said bill of sale, invoice or memorandum, and a copy of said contract is delivered to said buyer subject to adjustment only with reference to final closeout figure for any outstanding balance on a car traded in. The buyer's written acknowledgment, conforming to the requirements of subparagraph I(c), of delivery of a copy of a contract shall be conclusive proof of such delivery, that the contract when signed did not contain any blank spaces except as provided, and of compliance with this section in any action or proceeding by or against the seller or the holder of the contract.
VII. Within 5 business days of receipt of written request from the buyer, the holder of a retail installment contract shall give or forward to the buyer a written statement of the dates and amounts of payments or the total amount unpaid under such contract, or both, as specified in the request. A buyer shall be given a written or stamped receipt for any payment when made in cash.
VIII. A provision in a retail installment contract (1) for confession of judgment, power of attorney therefor, or wage assignment; (2) 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; (3) whereby, in the absence of the buyer's default, the holder may accelerate the maturity of any part of all of the time balance; (4) whereby a seller or holder of the contract, or other person acting on his 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; (5) whereby the buyer waives any right of action against the seller or holder of the contract, or other person acting on his behalf, for any illegal act committed in the collection of payments under the contract or in the repossession of the motor vehicle; (6) 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; or (7) 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.
IX. The following provisions are prohibited in retail installment contracts and shall not be enforceable:
(a) Any provision permitting the holder to waive the buyer's right to notice of default.
(b) 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.
(c) Any provisions permitting the holder to:
(1) Declare the note in default prior to 10 days following failure to make any installment payment due; or
(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.
(d) Any provision under which a buyer waives any right, benefit, or privilege which is conferred upon the buyer under this chapter.
Source.
1961, 193:1. 1991, 98:2. 1997, 322:12-17. 1998, 327:1, 2. 1999, 218:1, eff. Jan. 1, 2000. 2015, 207:5, eff. Sept. 4, 2015.