8.9A-204.1 - A-204.1. Security interests in consumer goods.
§ 8.9A-204.1. Security interests in consumer goods.
(a) Notwithstanding any other provision of the law to the contrary, a sellermay take a security interest only in the goods sold; provided, however, thissection shall apply only to the sale of consumer goods as defined in §8.9A-102 (23). Where the unpaid debts from two or more sales of consumergoods are consolidated into one debt payable on a single schedule ofpayments, and the consolidated debt is secured by security interests in theconsumer goods sold, the payments made by the debtor under the consolidatedschedule may be applied to the payment of the debts arising from the saleseither (1) in the order in which the sales were made, starting with the firstsale, or (2) in the same proportion as the original debts arising from thevarious sales bear to one another. To the extent debts are paid according tothis section, security interests in the consumer goods sold will terminate asthe debt originally incurred with respect to each item is paid.
(b) This section shall not apply to a sale of consumer goods purchasedpursuant to an open-end credit plan, when previously purchased consumer goodswere purchased pursuant to such plan. This section shall not apply to asecurity interest in a motor vehicle, trailer, or semitrailer which may bethe subject of a certificate of title under Title 46.2.
(c) A security interest created in violation of this section is void.
(2000, c. 1007.)