CHAPTER 244
(SB 133)
Installment sales contract charges revised
for guaranteed asset protection contracts.
ENTITLED, An Act to
revise certain provisions relating to charges associated with installment
sales contracts.
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, if the debt cancellation contract or debt suspension contract is a contract of
a depository institution authorized to provide such coverage, and the contract is sold
directly by the authorized depository institution or by a retailer acting as an agent for the
authorized depository institution. 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 must be disclosed and explained to the consumer prior to signing any
agreement to repay a consumer credit obligation. Any such charges must be separately agreed to
in writing and separately signed by the consumer.
Signed February 21, 2006