31A-6b-301 - General requirements for a guaranteed asset protection waiver.
31A-6b-301. General requirements for a guaranteed asset protection waiver.
(1) A person may not issue, market, sell, offer to sell, or otherwise provide a guaranteedasset protection waiver except in compliance with this chapter.
(2) If a creditor assigns, sells, or transfers a finance agreement, a guaranteed assetprotection waiver remains a part of the finance agreement.
(3) (a) If a borrower finances or otherwise pays the charge for a guaranteed assetprotection waiver, the creditor is liable to the borrower for a benefit due under the guaranteedasset protection waiver regardless of whether the retail seller, administrator, or other person whoreceives the payment from the borrower remits the charge.
(b) This Subsection (3) may not be construed to prejudice any claim a creditor may haveagainst a retail seller, administrator, or other person who receives a payment from a borrower butfails to remit the payment.
(4) A creditor may require that a guaranteed asset protection waiver that the creditorissues be sold for:
(a) a single payment; or
(b) periodic payments.
(5) The following may not be conditioned on a borrower purchasing a guaranteed assetprotection waiver:
(a) the extension of credit;
(b) a term of credit; or
(c) a term of the related vehicle sale or lease.
Enacted by Chapter 274, 2010 General Session