KRS 190.100: Retail installment contract. (Effective until January 1, 2027)

(1) (a) Every retail installment contract shall:

1. Be in writing in at least eight (8) point type;

2. Contain all the agreements of the parties;

3. Be signed by the retail buyer; and

4. Require a copy thereof to be furnished to the retail buyer at the time of

the execution of the contract.

(b) A retail installment contract need not appear on a single page and a contract

that includes a provision incorporating agreements that ap pear after the

buyer's signature, including without limitation, terms, and conditions on the

back or on subsequent pages, shall be deemed in compliance with KRS

446.060(1).

(c) No provisions for confession of judgment, power of attorney therefor, or wage

assignment contained in any retail installment contract shall be valid or

enforceable.

(d) 1. The holder of a retail installment contract may collect a delinquency and

collection charge in an amount not in excess of five percent (5%) of

each installment or fifteen dollars ($15), whichever is greater, for each

installment in arrears for a period not less than:

a. Three (3) days for installment periods that are less than twenty -

eight (28) days; or

b. Ten (10) days for installment periods that are twenty -eight (28)

days or longer.

2. In addition to such delinquency and collection charge, the retail

installment contra ct may provide for the payment of reasonable

attorneys' fees where such contract is referred to an attorney not a

salaried employee of the holder of the contract for collection, plus the

court costs.

(e) Unless notice has been given to the retail buyer of actual or intended

assignment of a retail installment contract, payment thereunder or tender

thereof made by the retail buyer to the last known holder of such contract

shall be binding upon all subsequent holders or assignees.

(f) Upon written request from the retail buyer, the holder of the retail installment

contract shall give or forward to the retail buyer a written statement of the

total amount unpaid under such contract. A retail buyer shall be given a

written receipt for any payment when made in cash.

(2) The retail installment contract shall contain the following:

(a) The cash sale price of the motor vehicle which is the subject matter of the

retail installment sale;

(b) The amount of the retail buyer's down payment, whether made in money or

goods, or partly in money or partly in goods;

(c) The difference between paragraphs (a) and (b) of this subsection;

(d) 1. Amount, if any, included for insurance and other benefits; and

2. Types of coverage and benefits;

(e) Official fees as defined in KRS 190.090;

(f) Any amounts eligible for inclusion in the cash sale price as defined in KRS

190.090 that the seller elects to separately itemize; and

(g) Principal balance, which is the sum of paragraphs (c), (d), and (e) of this

subsection.

(3) A retail installment contract is deemed in compliance with subsection (2) of this

section if it satisfies the requirements of the Truth in Lending Act that would apply

to a retail installment contract within the Truth in Lending Act's scope, regardless

of whether the Truth in Lending Act would apply to the retail installment sale at

issue.

(4) The amount, if any, included for insurance, shall not exceed the premiums

chargeable in accordance with applicable rate filings made with the commissioner

of insurance. Every retail seller or sales finance company, if insurance on the motor

vehicle is included in a retail installment contract shall within thirty (30) days after

execution of the retail installment contract send or cause to be sent to the retail

buyer a policy or policies o r certificate of insurance, which insurance shall be

written by a company authorized to do business in this state, clearly setting forth the

amount of the premium, the kind or kinds of insurance and the scope of the

coverage and all the terms, exceptions, limitations, restrictions and conditions of the

contract or contracts of the insurance. The buyer of a motor vehicle under a retail

installment contract shall have the privilege of purchasing such insurance from an

agent or broker of his own selection and of selecting an insurance company

acceptable to the seller; provided, however, that the inclusion of the insurance

premium in the retail installment contract when the buyer selects the agent, broker

or company, shall be optional with the seller. If any suc h policy is canceled, the

unearned insurance premium refund received by the holder of the contract shall be

credited to the final maturing installments of the retail installment contract. For

purposes of this subsection, single interest insurance insuring the retail seller or

sales finance company shall not be considered insurance on the motor vehicle.

Neither a copy of the policy nor a certificate of insurance of this type of insurance

shall be sent to the retail buyer.

(5) Any sales finance company hereun der may purchase or acquire from any retail

seller any retail installment contract on such terms and conditions as may be agreed

upon between them. No filing of the assignment, no notice to the retail buyer of the

assignment, and no requirement that the re tail seller shall be deprived of dominion

over the payments thereunder or the goods covered thereby if repossessed by the

retail seller shall be necessary to the validity of a written assignment of a retail

installment contract as against creditors, subseq uent purchasers, pledgees,

mortgagees, and lien claimants of the retail seller.

(6) An acknowledgment in the body of the retail installment contract by the retail buyer

of the delivery of a copy thereof shall be conclusive proof of delivery in any action

or proceeding by or against any assignee of a retail installment contract.

(7) (a) A "debt cancellation agreement" is a written provision in a retail installment

contract, or separate addendum thereto, which provides for cancellation of all

or part of an ob ligation of the buyer or obligor upon the occurrence of a

specified event.

(b) In accordance with subsection (2)(d) of this section, a debt cancellation

agreement shall be itemized by type on the retail installment contract and

considered an "other benefit " for which the seller, sales finance company, or

other holder may charge the buyer or obligor.

(c) A debt cancellation agreement shall not be considered a contract of, or for,

insurance.

Effective: June 27, 2025