§ 6-51-3 - Default, notice, right to cure, reinstatement.
SECTION 6-51-3
§ 6-51-3 Default, notice, right to cure,reinstatement. – (a) The default provisions of a consumer automobile lease or automobile loanagreement are enforceable only to the extent that:
(1) The consumer does not make one or more payments requiredby the lease or loan agreement; or
(2) The lessor or secured party establishes that the prospectof payment, performance or realization of the lessor's or secured party'sinterest in the automobile is significantly impaired.
(b) After a default under an automobile lease or loanagreement by the consumer the lessor or secured party may not accelerate, takejudicial action to collect, or repossess the automobile until the lessor orsecured party gives the consumer the notice required by this section and theconsumer does not cure the default in the time allowed under this section. Alessor or secured party may initiate a procedure to cure by sending to theconsumer, at any time after the consumer has been in default for ten (10) days,a notice of the right to cure the default. Said notice shall be delivered viacertified mail, return receipt requested, or via first class mail, at theconsumer's address last known to the lessor or secured party. The time whennotice is given shall be deemed to be upon actual delivery of the notice to theconsumer or three (3) business days following the mailing of the notice to theconsumer at the consumer's address last known to the lessor or secured party.
(c) The notice shall be in writing and shall conspicuouslystate the rights of the consumer upon default in substantially the followingform:
The heading shall read: "Rights of Defaulting consumer underRhode Island General Laws." The body of the notice shall read: "You may cureyour default in (describe automobile lease or loan agreement in a mannerenabling the consumer to identify it) by paying to (name and address of lessoror secured party) (amount due) before (date which is at least twenty-one (21)days after notice is delivered). If you pay this amount within the time allowedyou are no longer in default and may continue with the automobile (lease orloan) agreement as though no default has occurred.
If you do not cure your default by the date stated above, thelessor or secured party may sue you to obtain a judgment for the amount of thedebt and may take possession of the automobile.
If the lessor or secured party takes possession of theautomobile, you may get it back by paying the full amount of your debt plus anyreasonable expenses incurred by the lessor or secured party if you make therequired payment within twenty (20) days after the lessor or secured partytakes possession.
If (the secured party) sells the vehicle repossessed from theconsumer for an amount exceeding the amount outstanding on the automobile(loan) agreement including reasonable expenses related to judicial action andor repossession, the excess funds shall be returned promptly to the defaultingconsumer.
You have the right to cure a default only once in any twelve(12) month period during the period of the automobile (lease or loan)agreement. If you default again within the next twelve (12) months in makingyour payments, we may exercise our rights without sending you another right tocure notice. If you have questions, telephone (name of lessor or secured party)at (phone number)."
(d) Within the period for cure stated in the notice underthis section, the consumer may cure the default by tendering the amount of allunpaid sums due at the time of tender, including any unpaid delinquency ordefault charges, but without additional security deposit or prepayment ofperiod payments not yet due. Cure restores the rights of the lessor or securedparty and consumer under the automobile loan or lease agreement as if thedefault had not occurred.
(e) A consumer has the right to cure only once in any twelve(12) month period during the period of the automobile lease or loan agreement.