CONSOLIDATED LAW OF NEW YORK

PERSONAL PROPERTY LAW

CHAPTER 41 OF THE CONSOLIDATED LAWS

ARTICLE 9--MOTOR VEHICLE RETAIL INSTALLMENT SALES ACT

Personal Property § 302 Requirements as to retail installment contracts

6-a. If the buyer is obligated under the terms of a retail installment contract to maintain insurance on the motor vehicle that is the subject of the contract and if subsequent to the execution of the contract the buyer fails to maintain the insurance, the holder may make advances to procure the equivalent limits of insurance for either the interests of the buyer and the holder or of either of them, and any amount so advanced may be the subject of a credit service charge from the date of such advance as though such amount was part of the amount computed as provided in the closing paragraph of subdivision one of section three hundred three of this article. Each amount so advanced shall be secured by the motor vehicle if so provided in the contract and if the holder notifies the buyer in writing of the advance of such amount and of his or her option to repay such amount in any one of the following ways:

(a) Full payment within ten days from the date of giving or mailing the notice;

(b) Full amortization during the term of the insurance or the remaining term of the contract, at the option of the holder;

(c) If offered by the holder, as a final balloon payment payable one month after the last scheduled payment under the contract;

(d) If offered by the holder, full amortization after the term of the contract, to be payable in installments which do not exceed the average installment payable under the contract; or

(e) If offered by the holder, any other amortization plan.

If the buyer neither pays in full the amount so advanced nor notifies the holder in writing of his or her choice regarding amortization options before the expiration of ten days from the date of giving or mailing of the notice by the holder, the holder shall amortize the amount so advanced pursuant to paragraph (b) of this subdivision.

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