New York

The relevant statute is the Motor Vehicle Retail Installment Sales Act, N.Y. Pers. Prop. Law §§301 et seq. ("NY-MVRISA").

A. Actions creditor may take: NY-MVRISA §302(6-a) - If buyer fails to maintain insurance required by the contract, creditor may procure equivalent insurance to protect buyer or creditor or both of them. The amount advanced is secured by the vehicle if contract so provides and creditor notifies buyer as required below.

B. Notices required: NY-MVRISA §302(6-a) - For the amount advanced to be secured by the vehicle, creditor must notify buyer in writing of the advance and of buyer's option to repay the amount in one of the following ways:

(1) Full payment within 10 days after the date of giving or mailing notice;

(2) Full amortization during the term of the insurance or the remaining term of the contract, at creditor's option;

(3) If offered by creditor, as a final balloon payment payable one month after the last scheduled payment;

(4) If offered by creditor, full amortization after the term of the contract, payable in installments which do not exceed the average installments payable under the contract; or

(5) If offered by creditor, any other amortization plan.

Buyer may pay the amount in full or notify creditor in writing of buyer's choice of amortization options within 10 days after the giving or mailing of creditor's notice, otherwise creditor may fully amortize the amount for the term of the insurance or the remaining term of the contract.

C. Charges permitted: Yes. NY-MVRISA §302(6-a).

D. Finance charge allowed on creditor's payment: NY-MVRISA §302(6-a) - Amount advanced is subject to a finance charge from the date of such advance.

Click here to view relevant New York Code and Regulations.