ENTITLED, An Act to revise the list of products offered to consumers by motor vehicle dealers and
sales finance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 54-3A-5 be amended to read as follows:
54-3A-5. In addition to the finance charge, a creditor may contract for, and receive the following
additional charges in connection with an installment sales contract if such charges are itemized and
disclosed to the buyer:
(1) Official fees and taxes;
(2) Charges for guaranteed asset protection waivers, or credit life, accident, health, loss of
income, property, or liability insurance. However any insurance is optional, and the
consumer shall be informed, in writing, that any insurance is optional; and
(3) Charges for debt cancellation contracts and debt suspension contracts, as defined in
§ 51A-1-2 and sections 2 and 3 of this Act, if the debt cancellation contract or debt
suspension contract is a contract of a depository institution or a licensee pursuant to
chapter 54-4 authorized to provide such coverage, and the contract is sold directly by the
authorized depository institution or licensee pursuant to chapter 54-4, or by a retailer
acting as an agent for the authorized depository institution or licensee pursuant to chapter
54-4. However, any debt cancellation contract or debt suspension contract is optional, and
the consumer shall be informed, in writing, that any such contract is optional.
Any such charges shall be disclosed and explained to the consumer prior to signing any
agreement to repay a consumer credit obligation. Any such charges shall be separately agreed to in
writing and separately signed by the consumer.
Section 2. That chapter 54-4 be amended by adding thereto a NEW SECTION to read as follows:
For the purposes of this chapter, the term, debt cancellation contract, means a term of an
extension of credit or contractual arrangement modifying terms of an extension of credit under which
a licensee agrees to cancel all or part of a customer's obligation to repay an extension of credit from
the licensee upon the occurrence of a specified event. The contract may be separate from or a part
of other extension of credit documents. The term does not include installment payment deferral
arrangements in which the triggering event is the customer's unilateral election to defer repayment,
or the licensee's unilateral decision to allow a deferral of repayment.
Section 3. That chapter 54-4 be amended by adding thereto a NEW SECTION to read as follows:
For the purposes of this chapter, the term, debt suspension contract, means a term of an extension
of credit or contractual arrangement modifying terms of an extension of credit under which a licensee
agrees to suspend all or part of a customer's obligation to repay an extension of credit from the
licensee upon the occurrence of a specified event. The contract may be separate from or a part of
other extension of credit documents. The term does not include installment payment deferral
arrangements in which the triggering event is the customer's unilateral election to defer repayment,
or the licensee's unilateral decision to allow a deferral of repayment.
Section 4. That chapter 54-4 be amended by adding thereto a NEW SECTION to read as follows:
A licensee pursuant to this chapter may enter into debt cancellation contracts and debt suspension
contracts and charge a fee for those contracts in connection with any extension of credit that it
makes, purchases, or of which it accepts assignment.
Section 5. That § 58-1-3 be amended to read as follows:
58-1-3. No provision of this title applies with respect to:
(1) Fraternal benefit societies, except as stated in chapter 58-37A;
(2) Bail bondsmen, other than corporate sureties and their agents, except as stated in chapter
58-22;
(3) Motor vehicle service contracts which are contracts or agreements to perform or
indemnify for a specific duration the repair, replacement, or maintenance of motor
vehicles for operational or structural failure due to a defect in materials, workmanship,
or normal wear and tear, with or without additional provisions for incidental payment of
indemnity under limited circumstances, including towing, rental, and emergency road
service. Consideration for a motor vehicle service contract shall be stated separately from
the price of the motor vehicle;
(4) Service agreements or extended warranty plans for which the primary purpose is to
provide service, repair, or replacement on consumer goods or products including
appliances, merchandise, or equipment, or mechanical/electrical systems in single or
multiple-family dwellings. Incidental indemnity payments under such plans where service,
repair, or replacement is not feasible or economical does not void this exemption;
(5) Any person, trust, or other entity proven to be under the exclusive regulatory authority of
the federal government or another state agency;
(6) Any agreement to provide liability protection entered into pursuant to chapter 1-24 is
exempt from the regulatory requirements of Title 58, except to forms of insurance
coverage provided by an insurer otherwise subject to the insurance laws of this state;
(7) Any church plan, as defined in section 414(e) of the Internal Revenue Code of 1986, as
amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee
Retirement Income Security Act of 1974 (29 U.S. C. § 1002(33)(C)(i)); or any church
benefits board, as described in section 414(e)(3)(A) of the Internal Revenue Code of 1986,
as amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. § 1002(33)(C)(i));
(8) Any debt cancellation contract or debt suspension contract as defined by subdivisions
51A-1-2(10) and 51A-1-2(11) and sections 2 and 3 of this Act; or
(9) Any damage guarantee program for renters administered by a nonprofit corporation that
is recognized as an exempt organization under § 501(c)(3) of the Internal Revenue Code
and whose mission is to increase the availability of affordable housing to low and
moderate income tenants.
An Act to revise the list of products offered to consumers by motor vehicle dealers and sales finance
companies.
=========================
I certify that the attached Act
originated in the
SENATE as Bill No. 65
____________________________
Secretary of the Senate
=========================
____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate Bill No. 65
File No. ____
Chapter No. ______
|
|
=========================
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
=========================
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
=========================
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
|