S.B. 329                                                         VETOES

(3)       IN THE CASE OF A PURCHASE MONEY SECURITY INTEREST IN
CONSUMER GOODS, IF A CONSUMER BORROWER HAS PAID 60 PERCENT OF THE
CASH PRICE OR 60 PERCENT OF THE LOAN IN THE CASE OF ANOTHER SECURITY
INTEREST IN CONSUMER GOODS AND, AFTER DEFAULT, HAS NOT SIGNED A
STATEMENT RENOUNCING OR MODIFYING THE CONSUMER BORROWER'S RIGHTS
UNDER THIS SUBSECTION, A CREDIT GRANTOR WHO HAS REPOSSESSED THE
CONSUMER GOODS MUST TAKE REASONABLE ACTION WITHIN 90 DAYS AFTER THE
REPOSSESSION TO COMMENCE DISPOSAL OF THEM IN THE MANNER PROVIDED
UNDER SUBSECTION (J) OF THIS SECTION WITHIN 90 DAYS AFTER THE
REPOSSESSION.

(4)       (I) IN ANY OTHER CASE INVOLVING TANGIBLE PERSONAL
PROPERTY SECURING A LOAN, A CREDIT "GRANTOR MAY, AFTER "DEFAULT,
PROPOSE TO RETAIN THE PROPERTY IN FULL SATISFACTION OF THE OBLIGATIONS
OF THE BORROWER UNDER THE LOAN.

(II)     IF, AS AUTHORIZED BY SUBPARAGRAPH (I) OF THIS
PARAGRAPH," A CREDIT GRANTOR PROPOSES TO RETAIN PROPERTY IN FULL
SATISFACTION OF THE OBLIGATIONS OF THE BORROWER UNDER THE LOAN; THE
CREDIT GRANTOR SHALL SEND WRITTEN NOTICE OF THE PROPOSAL SHALL BE SENT
TO:

1.        THE CONSUMER BORROWER; AND

2.        EXCEPT IN THE CASE OF CONSUMER GOODS, ANY OTHER
PERSON WHO HAS A SECURITY INTEREST IN THE PROPERTY AND WHO:

A.       HAS DULY FILED A FINANCING STATEMENT INDEXED IN
THE NAME OF THE CONSUMER BORROWER IN THIS STATE; OR

B.        IS KNOWN BY THE CREDIT GRANTOR TO HAVE A
SECURITY INTEREST IN THE PROPERTY.

(III)    1. IF THE CONSUMER BORROWER OR OTHER PERSON
ENTITLED TO RECEIVE NOTIFICATION OBJECTS IN WRITING WITHIN 30 DAYS FROM
THE SENDING OF THE NOTIFICATION, THE CREDIT GRANTOR MUST TAKE
REASONABLE ACTION TO DISPOSE OF THE PROPERTY IN THE MANNER PROVIDED
UNDER SUBSECTION (J) OF THIS SECTION.

2. IN THE ABSENCE OF WRITTEN OBJECTION, THE CREDIT
GRANTOR MAY RETAIN THE PROPERTY IN FULL SATISFACTION OF THE
OUTSTANDING UNPAID INDEBTEDNESS UNDER THE LOAN.

(5)      IF DESPITE COMPLYING WITH THE REQUIREMENTS OF THIS
SECTION THERE IS NO SALE OF TANGIBLE PERSONAL PROPERTY SECURING A LOAN
UNDER SUBSECTION (J) OF THIS SECTION:

(I)       THE CREDIT GRANTOR MAY RETAIN THE PROPERTY WITHOUT
OBLIGATION TO ACCOUNT TO THE BORROWER; AND

(II)     IF THE PROPERTY IS RETAINED, ALL OBLIGATIONS OF THE
BORROWER UNDER THE LOAN SHALL BE DISCHARGED.

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