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| | | TITLE 26. TRADE REGULATION AND PRACTICE | 476-3 | HRS 476-3 General requirements of credit sale contracts. (a) Every credit sale contract shall: (1) Be in writing; (2) Contain, incorporate by reference, or otherwise clearly refer to all the agreement of the parties; provided that if a portion of the agreements are to be filed or recorded with any governmental agency, it may be contained in a separate part; and (3) Be signed by the parties; provided that if a portion of the agreements is contained in a separate part, the separate part shall be separately signed. If the contract provides for the extension of open-end credit, it shall be deemed to have been signed by the buyer if the buyer has signed an application for the open-end credit plan and, after receipt from the seller of a copy of the contract, has made purchases under the plan. The parties' signatures shall be made by use of any name, including any trade or assumed name, upon the credit sale contract, or by any word or mark used in lieu of a written signature. (b) The contract may provide for purchases to be made by the buyer from time to time and shall be effective as to such purchases. If the contract provides for purchases to be made from time to time, the sales slip or other written statement or evidence with respect to each purchase shall be furnished to the buyer promptly following each purchase and shall set forth the amount and date of the transaction and the seller's name or trade name. (c) The printed, handwritten, or typewritten portion of the contract shall be in a size at least equivalent to eight-point type. The contract shall contain, in a size and style equal at least to ten-point bold type if printed, upper case elite type if typewritten and equivalent thereto if handwritten, the words, "CREDIT SALE CONTRACT" both at the top of the contract and directly above the space reserved for the signature of the buyer. (d) Immediately above the words "CREDIT SALE CONTRACT" where they appear directly above the space reserved for the signature of the buyer there shall appear a notice substantially similar to the following: "NOTICE TO THE BUYER: Do not sign this contract before you read it. When you sign this contract, you are entitled to a copy of it that is filled in, in every necessary respect. You should keep it. This contract is covered by Hawaii's credit sale law, and you have the rights of a buyer under that law. You also may have rights under other state and federal laws." (e) The contract shall contain the names or trade names of the parties and their respective places of business or residence or their mailing addresses. If the contract does not provide for purchases to be made from time to time, either the contract, or the sales slip, or other written statement or evidence of the purchase required to be furnished to the buyer under this section, shall contain an indication of the types or a description of the goods, services, or both. [L 1961, c 102, pt of §1; am L 1963, c 68, §2; Supp, §201A-2; am L 1967, c 285, §2; HRS §476-2; am L 1969, c 131, §1; am L 1976, c 32, §2; am and ren L 1984, c 86, pt of §1] | 476-4 | HRS 476-4 Specific requirements of credit sale contracts. (a) Every credit sale contract which provides for the extension of open-end credit primarily for a personal, family, or household purpose shall disclose the annual percentage rate of the finance charge to be imposed under the contract, the circumstances under which the finance charge will be imposed, and an explanation of how the finance charge will be determined. (b) Every credit sale contract which provides for the extension of closed-end credit primarily for a personal, family, or household purpose shall disclose the following items as applicable: (1) The amount financed, which is the principal balance less any prepaid finance charge; (2) A written itemization of the amount financed, or a statement that the buyer has the right to receive a written itemization of the amount financed, together with space for the buyer to indicate whether it is desired; (3) The finance charge; (4) The total of payments; and (5) The total sale price. Additional items may be included in the contract to explain the calculations involved in determining the stated total of payments to be paid by the buyer. (c) Every credit sale contract which complies with the disclosure requirements of the federal Truth in Lending Act as of the date upon which the contract is executed shall be deemed to comply with the disclosure provisions of this section. [L 1961, c 102, pt of §1; Supp, §201A-3; HRS §476-3; am and ren L 1984, c 86, pt of §1] | | 476-9 | HRS 476-9 Late charges; court costs; attorney's fees. The holder of a credit sale contract, including any financial services loan company, may, if the contract so provides, collect a late charge on each installment in default for a period not less than ten days in an amount not in excess of $50 or five per cent of each delinquent installment, or portion thereof which remains unpaid on the due date agreed upon in the contract whichever is less, and the late charge shall not be assessed more than once for the same delinquent installment. The seller or other holder shall give the buyer written notice of the assessment of the late charges prior to the due date of the next contractual payment. No late charges shall be assessed after the acceleration of the maturity of the contract. In addition to the late charge, the contract may provide for the payment of costs of the action together with reasonable attorney's fees where the contract is referred for collection to an attorney or licensed collector who is not a salaried employee or officer of the holder of the contract. [L 1961, c 102, pt of §1; Supp, §201A-6; HRS §476-7; am and ren L 1984, c 86, pt of §1; am L 1989, c 266, §3] | | 476-25 | HRS476-25 Prohibition of removal or sale without notice. Unless the contract otherwise provides, the buyer may, without the consent of the seller, remove the goods from the island in which the goods are first kept for use by the buyer after the sale and sell, mortgage, or otherwise dispose of the buyer's interest in the goods; but prior to full compliance by the buyer with the terms of the contract, the buyer shall not remove the goods from the island except for temporary use for a period of not more than thirty days unless the buyer not less than ten days before the removal gives the seller written notice, either personally or by registered or certified mail, of the place to which the goods are to be removed and the approximate time of the intended removal; and prior to full compliance by the buyer with the terms of the contract the buyer shall not sell, mortgage, or otherwise dispose of the buyer's interest in the goods, unless the person to whom the buyer is about to sell, mortgage, or otherwise transfer the goods notifies the seller in writing, either personally or by registered or certified mail, of the name and address of the person to whom the buyer's interest in the goods is about to be sold, mortgaged, or otherwise transferred. [L 1961, c 102, pt of §1; Supp, §201A-29; HRS §476-30; am and ren L 1984, c | | 476-26 | HRS476-26 Removal; member of armed forces. Notwithstanding the provisions of section 476-25, a member of the armed forces of the United States on active duty who is a buyer of a motor vehicle under a contract, without the consent of the seller, may remove the motor vehicle from the island in which the motor vehicle was first kept for use by the buyer after sale if the buyer was a member of the armed forces of the United States on active duty at the time of execution of the contract and if such buyer has been reassigned to a different county, state, or country by competent government orders, unless the seller and buyer execute an agreement, separate and apart from the contract in respect of which it applies, stating that the motor vehicle may not be removed or stating the terms and conditions under which it may be removed. Notwithstanding the provisions of section 286-57, a member of the armed forces of the United States under contract with an out-of-state dealer or financial institution identified as the lien holder of record on a vehicle registration or vehicle title may remove said vehicle from the State without the consent of the seller. [L 1967, c 246, §§1, 2; HRS §476-31; am and ren L 1984, c 86, pt of §1; am L 2003, c 45, §1] | | 476-28 | HRS476-28 Regulation of finance charges. It shall be unlawful, directly or indirectly, to charge, contract for, collect, or receive any finance charge, on a credit sale contract except as is provided by this section. (1) If the finance charge is stated as a dollar amount and is added on or deducted in advance, and the buyer promises to pay a fixed total of payments, the finance charge shall not exceed the amount of interest or discount which could lawfully be added on or deducted in advance by a financial services loan company under article 9 of chapter 412 on a loan to run for the same period as the credit sale contract, where the actual cash received by the borrower would be equal in amount to the principal balance of the credit sale contract, provided that a minimum finance charge of not more than $10 shall be allowable in a credit sale when the finance charge is stated in a dollar amount. Upon maturity of a contract, the rate of finance charge on the unpaid principal balance of the contract shall be eighteen per cent a year, unless a lesser rate for after maturity finance charge is specified in the contract. (2) As an alternative to the finance charge authorized by paragraph (1), a seller may contract for and receive a finance charge at a rate not exceeding twenty-four per cent a year on the principal balance remaining unpaid from time to time under the contract, whether or not the rate of the finance charge under the contract is fixed or variable. Upon maturity of a contract, the rate of finance charge on the unpaid principal balance of the contract may be twelve per cent a year, the original contract rate of finance charge or, in the case of any extension or deferral, the rate of finance charge permitted by this chapter on the amount extended or deferred, whichever is greatest. [L 1961, c 102, pt of §1; Supp, §201A-31; HRS §476-33; am L 1979, c 212, §1; am and ren L 1984, c 86, pt of §1; am L 1989, c 266, §3; am L 1993, c 350, §23] | | 476-29 | HRS476-29 Advertising in connection with credit sales. (a) Any person who advertises by television, radio, telephone, newspaper, magazine, other printed material, or in any other way, for the credit sale of goods or services primarily for person, family, or household purposes under an open-end credit plan and who in such advertising recites any of the terms required by section 476-4(a) to be disclosed in the same advertisement shall recite: (1) Any minimum, fixed, transaction, activity, or similar charge that could be imposed; (2) The annual percentage rate, and if the plan provides for a variable periodic rate, that fact; and (3) Any membership or participation fee that will be imposed. (b) Any person who advertises by television, radio, telephone, newspaper, magazine, other printed material, or in any other way, for the credit sale of goods or services primarily for personal, family, or household purposes, under a contract providing for the extension of closed-end credit, and who in that advertising recites the amount or percentage of any down payment, the number of payments, the period of payment, the amount of any payment, or the amount of any finance charge, shall in the same advertisement recite: (1) The amount or percentage of the down payment; (2) The terms of repayment; and (3) The annual percentage rate and, if the rate may be increased after the buyer becomes contractually obligated on the contract, that fact. (c) Every advertisement which complies with the requirement of the federal Truth in Lending Act as of the date upon which the advertisement is published shall be deemed to comply with the disclosure provisions of this section. (d) This section shall not apply to catalog offers to sell which conform to the requirements of section 476-11. [L 1967, c 43, §2; HRS §476-35; am and ren L 1984, c 86, pt of §1; am L 1987, c 61, §1] | | 476-31 | HRS476-31 Attorney general, director of [the office of] consumer protection, or prosecutor to enforce chapter. The attorney general, the director of the office of consumer protection, or the prosecuting attorney may bring an action in the name of the State against any person to restrain and prevent any violation of this chapter. [L 1967, c 285, §10; HRS §476-37; am L 1976, c 32, §4; am and ren L 1984, c 86, pt of §1] | | | | | | | | | | |
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