HB215 Alabama 2023 Session

Updated Apr 17, 2023

House Bill

In Second Chamber

Current Status

Regular Session 2023

Session

Sponsor

Summary

Primary Sponsor: Reed Ingram Representative
Republican
Session: Regular Session 2023
Title: Relating to consumer credit financing in the sale or lease of motor vehicles; to amend Section 8-37A-4 of the Code of Alabama 1975, as added by Act 2022-179 of the 2022 Regular Session, relating to motor vehicle value protection agreements and the requirements of a provider of the agreements to insure performance of the obligations of the provider; to further clarify the requirements of an insurance policy maintained by the provider for this purpose.
Description: Under existing law, motor vehicle value protection agreements are authorized in motor vehicle consumer credit financing transactions to pay deficiency balances due under certain conditions.
Under existing law, the provider of a motor vehicle value protection agreement is required to insure its agreement under an insurance policy or meet certain other financial requirements.
This bill would clarify that the insurance policy would be for the purpose of paying or reimbursing obligations under a motor vehicle value protection agreement in the event the provider fails to perform the obligations.
Subjects: Motor vehicle value protection agreements, insurance policy of provider required to insure payments of obligations of provider