44-287. Contents of contract

(L19, Ch. 252, sec. 61. Eff. 7/1/20)

A. The contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the motor vehicle including its make, year, model and identification number or marks.

B. The contract shall contain the following items:

1. The cash sale price of the motor vehicle.

2. The amount of the buyer's down payment, and whether made in money or goods, or partly in money and partly in goods.

3. The difference between paragraphs 1 and 2 of this subsection.

4. The amount, if any, included for insurance specifying the term and types of coverage. If the contract does not include liability insurance coverage for bodily injuries and property damage, such fact shall be so set forth in capital letters immediately above the signatures of the parties to the contract.

5. The final cash price balance, which is the sum of paragraphs 3 and 4 of this subsection.

6. The amount of the finance charge and the rate at which it is computed.

7. The time balance, which is the sum of paragraphs 5 and 6 of this subsection, payable in installments by the buyer to the seller, the number of installments, the amount of each installment and the due date or period of each installment.

8. A statement, adjacent to the signature line of the contract, in bold-faced type, setting forth the telephone number and address of the department of insurance and financial institutions and stating that the seller is regulated by the department of insurance and financial institutions and that any complaints concerning the contract may be addressed to the department of insurance and financial institutions.

C. The items set forth in subsection B of this section need not be stated in the sequence or order set forth, and additional items may be included to explain the calculations involved in determining the stated time balance to be paid by the buyer.

D. Notwithstanding any other law, in the case of motor vehicles, trailers or semitrailers, a transaction does not create a sale or security interest merely because it provides that the rental price is permitted or required to be adjusted under the agreement either upward or downward by reference to the amount realized on sale or other disposition of the motor vehicle, trailer or semitrailer.