Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 39 - MOBILE HOME FINANCING › Section 39.7 - Sound investment practices in retail purchase financing

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Any retail purchase financing investment
				shall conform to the requirements of Article 9 of the Uniform Commercial Code,
				as amended and supplemented (12A P. S. §§ 9-101-9-507)
				(Repealed).
(b) No such loan may be
				granted unless it constitutes a first lien on the chattels described
				therein.
(c) The promissory note on
				retail sales shall contain a provision that if the obligor sells the mobile
				home or removes therefrom any chattels described in the security agreement
				without prior written consent of the association, the entire balance remaining
				due on the note shall immediately become due and payable.
(d) Mobile home chattel paper purchased
				pursuant to these regulations may provide for such interest rates and other
				charges as are permitted by the Motor Vehicle Sales Finance Act (69 P. S.
				§§
										601-637), and associations
				acquiring such paper pursuant hereto shall be entitled to receive such interest
				and charges as are permitted other motor vehicle sales finance company
				licensees.
(e) No investment shall
				be made in any such retail paper unless the owner of the security has same
				properly titled with the Bureau of Motor Vehicle Division of the Department of
				Revenue of the Commonwealth and such title reflects that the association has a
				first lien thereon. The association must hold the encumbered title until such
				time as its lien is paid in full.
(f) With the exception of the limitations
				specified in this chapter, associations shall be bound by the sections of the
				Motor Vehicle Sales Finance Act (69 P. S. §§
										601-637) pertaining to motor vehicle sales
				finance companies when making investments pursuant to this chapter, it being
				understood, however, that investments by an association in mobile home chattel
				paper shall be in conformity with sound practices in making such investments.
				Such chattel paper shall include provisions for protection of the association
				and shall provide specifically for protection with respect to insurance,
				personal and real property taxes, other governmental levies, maintenance and
				repairs, and for such other protection as may be lawful and appropriate. The
				association may pay taxes or other governmental levies, insurance premiums on
				policies giving dual protection to the association and the mortgagor, as their
				respective interests may appear, or similar charges for the protection of its
				security interest, and all such payments may, when lawful, be added to the
				monetary obligation of the obligor. The association shall, in a timely manner,
				take all steps necessary to protect its security interest under the applicable
				law.
(g) The board of directors of
				the association shall adopt standards to be observed in making all loans
				provided for in this chapter. Such standards shall call for proper loan
				applications and credit reports in connection with each retail loan purchased
				by an association; the application and credit report shall be accompanied by
				the original manufacturer's invoice which shall be retained in the files of the
				association.
(h) In the event of
				any conflict between the terms of this chapter, the Savings Association Code of
				1967 (7 P. S. §§
										6020-1-6020-254), and the Motor Vehicle Sales
				Finance Act (69 P. S. §§
										601-637), or any of same, the association
				shall seek the advice of the Department which reserves the right to resolve
				such conflicts.