{"data":{"id":"us-ky/krs-190.100","jurisdiction":"us-ky","citation":"KRS 190.100","heading":"Retail installment contract.        (Effective until January 1, 2027)","body":"(1) (a) Every retail installment contract shall:\n1. Be in writing in at least eight (8) point type;\n2. Contain all the agreements of the parties;\n3. Be signed by the retail buyer; and\n4. Require a copy thereof to be furnished to the retail buyer at the time of\nthe execution of the contract.\n(b) A retail installment contract need not appear on a single page and a contract\nthat includes a provision incorporating agreements that ap pear after the\nbuyer's signature, including without limitation, terms, and conditions on the\nback or on subsequent pages, shall be deemed in compliance with KRS\n446.060(1).\n(c) No provisions for confession of judgment, power of attorney therefor, or wage\nassignment contained in any retail installment contract shall be valid or\nenforceable.\n(d) 1. The holder of a retail installment contract may collect a delinquency and\ncollection charge in an amount not in excess of five percent (5%) of\neach installment or fifteen dollars ($15), whichever is greater, for each\ninstallment in arrears for a period not less than:\na. Three (3) days for installment periods that are less than twenty -\neight (28) days; or\nb. Ten (10) days for installment periods that are twenty -eight (28)\ndays or longer.\n2. In addition to such delinquency and collection charge, the retail\ninstallment contra ct may provide for the payment of reasonable\nattorneys' fees where such contract is referred to an attorney not a\nsalaried employee of the holder of the contract for collection, plus the\ncourt costs.\n(e) Unless notice has been given to the retail buyer of actual or intended\nassignment of a retail installment contract, payment thereunder or tender\nthereof made by the retail buyer to the last known holder of such contract\nshall be binding upon all subsequent holders or assignees.\n(f) Upon written request from the retail buyer, the holder of the retail installment\ncontract shall give or forward to the retail buyer a written statement of the\ntotal amount unpaid under such contract. A retail buyer shall be given a\nwritten receipt for any payment when made in cash.\n(2) The retail installment contract shall contain the following:\n(a) The cash sale price of the motor vehicle which is the subject matter of the\nretail installment sale;\n(b) The amount of the retail buyer's down payment, whether made in money or\ngoods, or partly in money or partly in goods;\n(c) The difference between paragraphs (a) and (b) of this subsection;\n(d) 1. Amount, if any, included for insurance and other benefits; and\n2. Types of coverage and benefits;\n(e) Official fees as defined in KRS 190.090;\n(f) Any amounts eligible for inclusion in the cash sale price as defined in KRS\n190.090 that the seller elects to separately itemize; and\n(g) Principal balance, which is the sum of paragraphs (c), (d), and (e) of this\nsubsection.\n(3) A retail installment  contract is deemed in compliance with subsection (2) of this\nsection if it satisfies the requirements of the Truth in Lending Act that would apply\nto a retail installment contract within the Truth in Lending Act's scope, regardless\nof whether the Truth in  Lending Act would apply to the retail installment sale at\nissue.\n(4) The amount, if any, included for insurance, shall not exceed the premiums\nchargeable in accordance with applicable rate filings made with the commissioner\nof insurance. Every retail seller or sales finance company, if insurance on the motor\nvehicle is included in a retail installment contract shall within thirty (30) days after\nexecution of the retail installment contract send or cause to be sent to the retail\nbuyer a policy or policies o r certificate of insurance, which insurance shall be\nwritten by a company authorized to do business in this state, clearly setting forth the\namount of the premium, the kind or kinds of insurance and the scope of the\ncoverage and all the terms, exceptions, limitations, restrictions and conditions of the\ncontract or contracts of the insurance. The buyer of a motor vehicle under a retail\ninstallment contract shall have the privilege of purchasing such insurance from an\nagent or broker of his own selection and of selecting an insurance company\nacceptable to the seller; provided, however, that the inclusion of the insurance\npremium in the retail installment contract when the buyer selects the agent, broker\nor company, shall be optional with the seller. If any suc h policy is canceled, the\nunearned insurance premium refund received by the holder of the contract shall be\ncredited to the final maturing installments of the retail installment contract. For\npurposes of this subsection, single interest insurance insuring the retail seller or\nsales finance company shall not be considered insurance on the motor vehicle.\nNeither a copy of the policy nor a certificate of insurance of this type of insurance\nshall be sent to the retail buyer.\n(5) Any sales finance company hereun der may purchase or acquire from any retail\nseller any retail installment contract on such terms and conditions as may be agreed\nupon between them. No filing of the assignment, no notice to the retail buyer of the\nassignment, and no requirement that the re tail seller shall be deprived of dominion\nover the payments thereunder or the goods covered thereby if repossessed by the\nretail seller shall be necessary to the validity of a written assignment of a retail\ninstallment contract as against creditors, subseq uent purchasers, pledgees,\nmortgagees, and lien claimants of the retail seller.\n(6) An acknowledgment in the body of the retail installment contract by the retail buyer\nof the delivery of a copy thereof shall be conclusive proof of delivery in any action\nor proceeding by or against any assignee of a retail installment contract.\n(7) (a) A \"debt cancellation agreement\" is a written provision in a retail installment\ncontract, or separate addendum thereto, which provides for cancellation of all\nor part of an ob ligation of the buyer or obligor upon the occurrence of a\nspecified event.\n(b) In accordance with subsection (2)(d) of this section, a debt cancellation\nagreement shall be itemized by type on the retail installment contract and\nconsidered an \"other benefit \" for which the seller, sales finance company, or\nother holder may charge the buyer or obligor.\n(c) A debt cancellation agreement shall not be considered a contract of, or for,\ninsurance.\nEffective: June 27, 2025","path":["KRS Chapter 190"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56169","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"97e4172cfe401337644d2cc311cd8eb0f7ee96879bb1cc920a01f1199b8acebb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190.090","next":"us-ky/krs-190.110"},"notice":"GroundRules: Original legal text. Not legal advice."}