Montana Code 30-14-2205. Disclosures
30-14-2205. Disclosures. Guaranteed asset protection waivers must disclose, as applicable, in writing and in clear, understandable language, the following:
Terms Used In Montana Code 30-14-2205
- Administrator: means a person, other than an insurer or creditor, that performs administrative or operational functions pursuant to guaranteed asset protection waiver programs. See Montana Code 30-14-2202
- Borrower: means a debtor, retail buyer, or lessee under a finance agreement. See Montana Code 30-14-2202
- Creditor: means :
(a)the lender in a loan or credit transaction;
(b)the lessor in a lease transaction;
(c)a retail dealer of motor vehicles that provides credit to buyers as part of a retail sale, provided that the dealer complies with the provisions of this part;
(d)the seller in commercial retail installment transactions; or
(e)the assignees of any of the persons set out in subsections (3)(a) through (3)(d) to whom the credit obligation is payable. See Montana Code 30-14-2202
- Finance agreement: means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle. See Montana Code 30-14-2202
- Free look period: means the period of time from the effective date of the guaranteed asset protection waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. See Montana Code 30-14-2202
- GAP waiver: means a contractual agreement that is part of or a separate addendum to the finance agreement in which a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of a motor vehicle. See Montana Code 30-14-2202
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Motor vehicle: means a self-propelled or towed vehicle designed for personal or commercial use, including but not limited to an automobile, truck, motorcycle, recreational vehicle, all-terrain vehicle, snowmobile, camper, boat, and personal watercraft and a trailer used to transport a motorcycle, boat, camper, or personal watercraft. See Montana Code 30-14-2202
- Writing: includes printing. See Montana Code 1-1-203
(1)the name and address of the initial creditor and the borrower at the time of sale and the identity of any administrator if different from the creditor;
(2)the purchase price and the terms of the GAP waiver, including without limitation the requirements for protection, conditions, or exclusions associated with the GAP waiver;
(3)that the borrower may cancel the GAP waiver within a free look period as specified in the waiver and is entitled to a full refund of the purchase price so long as benefits have not been provided;
(4)the procedure the borrower must follow, if any, to obtain GAP waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits;
(5)whether the GAP waiver may be canceled after the free look period and the conditions under which it may be canceled, including the procedures for requesting any refund due;
(6)that in order to receive any refund due in the event of a borrower’s cancellation of the GAP waiver agreement or early termination of the finance agreement, the borrower, in accordance with terms of the waiver, shall provide a written request to cancel to the creditor, administrator, or other party as specified in the GAP waiver. If a borrower is canceling the GAP waiver due to early termination of the finance agreement, the borrower shall provide a written request to the creditor, administrator, or other party within 90 days of the occurrence of the event terminating the finance agreement.
(7)the methodology for calculating any refund of the unearned purchase price of the GAP waiver due in the event of cancellation of the GAP waiver or early termination of the finance agreement; and
(8)that the extension of credit, the terms of the credit, or the terms of the related motor vehicle sale or lease may not be conditioned upon the purchase of the GAP waiver.