KRS 371.290: Consolidation of subsequent purchases with existing contract --

Memorandum -- Allocation of payments.

(1) If, in a retail installment transaction, a retail buyer makes any subsequent purchases

of goods or services from a retail seller from whom he has previously purchased

goods or services under one or more retail installment contracts, and the amounts

under such previous contract or contracts have not been fully paid, the subsequent

purchases may, at the seller's option, be included in and consolidate d with one or

more of the previous contract or contracts. Each subsequent purchase shall be a

separate retail installment contract under KRS 371.210 to 371.330, notwithstanding

that the same may be included in and consolidated with one or more of such

previous contract or contracts. All the provisions of KRS 371.210 to 371.330 with

respect to retail installment contracts shall be applicable to such subsequent

purchases except as stated in subsections (2) to (7) of this section.

(2) In the event of such con solidation, in lieu of the buyer's executing a retail

installment contract respecting each subsequent purchase, as provided in KRS

371.220 to 371.290, it shall be sufficient if the seller shall prepare a written

memorandum of each subsequent purchase, in w hich case the provisions of

subsections (1), (2), (3), and (4) of KRS 371.220 shall not be applicable. Unless

previously furnished in writing to the buyer by the seller, by sales slip, memoranda,

or otherwise, such memorandum shall set forth with respect t o each subsequent

purchase the following:

(a) The cash sale price of the goods or services;

(b) The amount of the buyer's down payment, identifying the amounts paid in

money and allowed for goods traded in;

(c) The difference between items (a) and (b);

(d) The aggregate amount, if any, included for insurance, if a separate identified

charge is made therefor, specifying the type or types of insurance and the term

or terms of coverage;

(e) The aggregate amount of official fees;

(f) The principal balance, which is the sum of items (c), (d), and (e);

(g) The amount or rate of the time price differential;

(h) The amount of the time balance owed by the buyer to the seller, which is the

sum of items (f) and (g);

(i) The outstanding balance of the previous contract or contracts;

(j) The consolidated time balance, which is the sum of items (h) and (i);

(k) The revised installments applicable to the consolidated time balance, if any.

The seller shall deliver to the buyer a copy of such memorandum prior to the due

date of the first installment of such consolidated contract.

(3) When such subsequent purchases are made, if the seller has retained title or taken a

lien or other security interest in any of the goods purchased under any one of the

contracts included in the consolidation.

(4) The entire amount of all payments made prior to such subsequent purchases shall be

deemed to have been applied on the previous purchases.

(5) Each payment after such subsequent purchases made on this consolidated contract

shall be deemed to have been allocated to all of the various purchases in t he same

ratio as the original cash sale prices of the various purchases bear to the total of all.

(6) Where the amount of each installment payment is increased in connection with such

subsequent purchases, at the seller's option, the subsequent payments m ay be

deemed to be allocated as follows: an amount equal to the original periodic payment

to the previous purchase, the balance to the subsequent purchase. However, the

amount of any down payment on the subsequent purchase shall be allocated in its

entirety to such subsequent purchase.

(7) The provisions of subsections (3), (4), (5), and (6) of this section shall not apply to

cases where such previous and subsequent purchases involve equipment, parts, or

other goods attached or affixed to goods previously purchased and not fully paid, or

to services in connection therewith rendered by the seller at the buyer's request.