2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 36 - Retail Installment Sales and Finance Companies (§§ 731 — 793) › Subchapter II - Retail Installment Sales of Goods and Services (§§ 741 — 760) › § 742 - Contents of the contract

(1) The contract shall contain, printed or typewritten, in at least ten-point type:
(a) At the top and directly over the space reserved for the signature of the buyer, the words “Retail Installment Contract”.
(b) The following notice:
“Notice to the Buyer: Do not sign this contract before reading the same or if it contains blank spaces. You are entitled to a copy of this contract. Under the present law you have the right to pay off in advance the balance owed under the contract. In those cases the principal owed as of the date of payment, plus any balance to cover charges or interest accrued to that date, shall be cancelled.”
(2) The contract shall contain the name of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer him/herself, the name of the city or town where the contract is executed and an adequate description of the services and goods (including the make and model, if any, in the case of goods customarily sold by make and model).
(3) Each contract shall set forth the following items:
(a)
(i) The sales price of the goods or services object of the retail installment sale;
(ii) the sales price of any accessories or services not included in paragraph (i), itemized separately;
(b) the amount of the down payment made by the buyer, itemizing the amounts paid in cash and in goods and including a brief description of the goods, if any, traded in;
(c) the difference between clause (a) and clause (b);
(d) the amount, if any, included for insurance, indicating the type of insurance and the cost of each coverage at the option of the buyer;
(e) the amount, if any, of the fees;
(f) the initial principal amount, which shall be the sum of clauses (c), (d) and (e) of this subsection;
(g) the amount of the financing charge and the “annual per centum rate”;
(h) the deferred balance, which shall be the sum of clauses (f) and (g) of this subsection payable by the buyer, the number of installments required, the amount of each installment stated in dollars and the due or expiration date of each such installment. It shall not be necessary to indicate the items in the order and sequence set forth above; additional items may be included to explain the computations made to determine the deferred balance to be paid by the buyer;
(i) the charges and penalties imposed for payments in default and the manner they are computed. Any amount stated in figures and percentages shall appear in at least ten- (10) point type, typewritten in a type no smaller than “elite” type, or legibly and clearly handwritten. This information shall be included in the contract before credit is granted.
(4) Any retail installment sales contract shall contain the following notice: “Notice to the Assignee—The assignee receiving or acquiring this retail installment contract or a promissory note related thereto, shall be subject, under equal conditions, to any claim or defense that the buyer may initiate against the seller. The assignee of the contract shall be entitled to file against the seller all the claims and defenses that the buyer may raise against the seller of the goods and the services.”
(5) The contract must contain all statements required by, and [must] comply with, all applicable federal laws and regulations, including but not limited to the “Truth in Lending Act” (15 U.S.C. § 1601 et seq.) and Regulation Z adopted pursuant to the latter.
History —June 19, 1964, No. 68, p. 192, § 202; May 14, 1968, No. 43, p. 66, § 2; May 31, 1972, No. 78, p. 171, § 2; May 31, 1973, No. 69, p. 310, § 2; Mar. 4, 1976, No. 9, p. 20, § 1; Dec. 23, 1998, No. 310, § 2; Aug. 15, 1999, No. 258, § 2, eff. 60 days after Aug. 15, 1999.