{"data":{"id":"us-nc/n.c.-gen.-stat.-66-440","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 66-440","heading":"Definitions.","body":"The following definitions apply in this Article:\n(1)\tAdministrator. - A person that performs administrative or operational functions with respect to guaranteed asset protection waivers.\n(2)\tBorrower. - A debtor, retail buyer, or lessee under a vehicle finance agreement.\n(3)\tCreditor. - Any of the following:\na.\tA lender in a loan or credit transaction.\nb.\tA lessor in a lease transaction.\nc.\tA vehicle dealer, including a motor vehicle dealer as that term is defined in G.S. 20-286(11), that provides credit to or arranges financing for a purchaser of a vehicle.\nd.\tA seller in a commercial retail installment transaction.\ne.\tAn assignee of any of the foregoing to whom the credit obligation is payable.\n(4)\tFree-look period. - The period of time from the effective date of a guaranteed asset protection waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower.\n(5)\tGuaranteed asset protection waiver. - Either of the following:\na.\tA contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's vehicle finance agreement in the event of a total physical damage loss or unrecovered theft of the vehicle, which agreement shall be part of, or a separate addendum to, the vehicle finance agreement. The agreement may also provide, with or without a separate charge, a benefit that waives an amount or provides a borrower with a credit towards the purchase of a replacement vehicle.\nb.\tA contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a vehicle. The agreement must be part of, or a separate addendum to, the lease agreement. Excess wear and use waivers may also cancel or waive amounts due for excess mileage.\nThe term does not include a vehicle value protection agreement as defined in G.S. 66-471(10).\n(6)\tInsurer. - An insurance company licensed, registered, or otherwise authorized to do business under Chapter 58 of the General Statutes.\n(7)\tVehicle. - A motor vehicle, as that term is defined in G.S. 20-286(10), as well as self-propelled or towed vehicles designed for personal or commercial use, including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and trailers for motorcycles, boats, campers, and personal watercraft.\n(8)\tVehicle finance agreement. - A loan, lease, or retail installment sales contract for the purchase or lease of a vehicle. (2013-193, s. 1; 2021-172, s. 1.)","path":["Chapter 66. Commerce and Business.","Article 46. Guaranteed Asset Protection Waivers."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_66/GS_66-440.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:07:52Z","sha256":"308467b0a4e4ce9f607ea3393cf102ab23ce7b1d4d34e322ff90577d3d9534cd","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-66-439","next":"us-nc/n.c.-gen.-stat.-66-441"},"notice":"GroundRules: Original legal text. Not legal advice."}