HARRY HUGHES, Governor

1753

in which the sale is made -- 27 percent on the outstanding
balance.

(b) A service or other charge not specifically provided for
in this section may not be included in a retail installment sale
of a motor vehicle.

(c) Except for an overcharge which results from a bona fide
error in computation and which is corrected within 60 days from
the date of the agreement, if a holder collects a charge greater
in amount than the maximum permitted by this section, he shall
forfeit to the buyer all finance charges paid or payable under
the agreement.

(d)  (1) A holder may not collect from the buyer a greater
amount for insurance than that allowed by the State Insurance
Department for the insurer carrying the risk.

(2)  The insurance for which the holder may collect
from the buyer is limited to automobile bodily injury and
property damage liability, automobile physical damage, life and
accident, medical reimbursement, and nonfiling insurance.

(3)  Except for an overcharge which results from a
bona fide error in computation and which is corrected within 60
days from the date of the agreement, if a holder collects from
the buyer a charge for insurance greater than that permitted
under this subsection, he shall pay to the buyer a sum equal to
ten times the amount of the overcharge.

(e)  A finance charge in excess of the rates provided in
this section may be imposed on the sale of new and used trucks,
new and used truck tractors, new and used trailers, or new and
used semitrailers purchased for industrial, commercial, or
agricultural purposes.

(f)  [Notwithstanding subsection (a) of this section, the
finance charge imposed on a motor vehicle sold under a contract
[executed before July 1, 1985,] may not exceed the following
annual simple interest rates of finance charge:

(1)  Class 1: A new motor vehicle -- 24 percent on the
outstanding balance; and

(2)  Class 2: A used motor vehicle designated by the
manufacturer by a model year not more than 2 years before the
year in which the sale is made -- 24 percent on the outstanding
balance.

(g)] A seller may assign a retail installment agreement

and receive a portion of the finance charge only if the fact is

disclosed in the agreement. The specific amount to be received
need not be disclosed.

12-610.