{"data":{"id":"us-ky/krs-367.702","jurisdiction":"us-ky","citation":"KRS 367.702","heading":"Definitions for KRS 367.701 to 367.709.  (Effective January 1, 2027)","body":"As used in KRS 367.701 to 367.709:\n(1) \"Borrower\" means a debtor, or retail purchaser or lessee, under a finance\nagreement;\n(2) \"Commercial\" means a transaction under which a ve hicle will be used primarily for\nbusiness purposes;\n(3) \"Consumer\":\n(a) Means:\n1. An individual purchaser or lessee of a vehicle; or\n2. A borrower; and\n(b) Includes a contract holder;\n(4) \"Contract holder\" means a person who is the purchaser or holder of a vehicle value\nprotection agreement;\n(5) \"Creditor\" means any of the following:\n(a) The lender in a loan transaction;\n(b) The lessor in a lease transaction;\n(c) Any retail seller of vehicles; and\n(d) The assignee of any person referenced in paragraph (a), (b), or (c) of this\nsubsection to whom a credit obligation is payable;\n(6) \"Debt waiver\" means any:\n(a) Guaranteed asset protection waiver; and\n(b) Excess wear and use waiver;\n(7) \"Excess wear and use waiver\" means a contractual agreement, as part of or as a\nseparate addendum to a lease agreement, in which a creditor agrees, with or without\na separate charge, to cancel or waive all or parts of amounts that may become due\nunder a borrower's lease agreement as a result of excessive wear and use of a\nvehicle, including an agreement to cancel or waive amounts due for excessive\nmileage;\n(8) \"Finance agreement\" means any of the following:\n(a) A loan, retail installment sales contract, or lease for  the purchase, refinancing,\nor lease of a vehicle; and\n(b) A loan with a term of at least twelve (12) months that is secured by a vehicle;\n(9) \"Free look period\" means a period of time from the effective date of a vehicle\nfinancial protection product until  the date the vehicle financial protection product\nmay be canceled without penalty, fees, or costs;\n(10) \"Guaranteed asset protection waiver\":\n(a) Means a contractual agreement wherein a creditor agrees, with or without a\nseparate charge, to cancel or waiv e all or part of amounts due under a\nborrower's finance agreement in the event of a total physical damage loss or\nunrecovered theft of the vehicle; and\n(b) May provide, with or without a separate charge, a benefit that waives an\namount, or provides a borro wer with a credit, toward the purchase of a\nreplacement vehicle;\n(11) \"Insurer\" means:\n(a) An insurance company licensed, registered, or otherwise authorized under the\nlaws of this state to transact insurance business; or\n(b) A nonadmitted insurer in accor dance with the requirements of Subtitle 10 of\nKRS Chapter 304;\n(12) \"Person\" includes an individual, company, association, organization, partnership,\nbusiness trust, corporation, and every form of legal entity;\n(13) \"Vehicle\":\n(a) Means a self-propelled or towed vehicle designed for personal or commercial\nuse; and\n(b) Includes automobiles, trucks, motorcycles, recreational vehicles, all -terrain\nvehicles, snowmobiles, campers, boats, personal watercraft, and related\ntrailers;\n(14) \"Vehicle financial protection product\" means any:\n(a) Debt waiver; and\n(b) Vehicle value protection agreement; and\n(15) \"Vehicle value protection agreement\":\n(a) Means a contractual agreement that, upon the occurrence of an adverse event\nto a contract holder's vehicle, including loss, theft, damage, obsolescence,\ndiminished value, or depreciation, provides a benefit towards either:\n1. The reduction of some or all o f the contract holder's current finance\nagreement deficiency balance; or\n2. The purchase or lease of a replacement vehicle or vehicle services;\n(b) Includes trade -in credit agreements, diminished value agreements,\ndepreciation benefit agreements, vehicle c ash down payment agreements, and\nother similarly named agreements; and\n(c) Does not include:\n1. A debt waiver;\n2. A service contract as defined in KRS 304.5-070; or\n3. Insurance or an insurance contract regulated under KRS Chapter 304.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58232","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:05Z","sha256":"14ef38d945dc0879ed5ba9de3dafd40bb27d2c0d60b24b7e240e99d81943bfb2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.701","next":"us-ky/krs-367.704"},"notice":"GroundRules: Original legal text. Not legal advice."}