SB 300: "An Act relating to the handling of negative equity in motor vehicle transactions."
00 SENATE BILL NO. 300 01 "An Act relating to the handling of negative equity in motor vehicle transactions." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 45.10.220(5) is amended to read: 04 (5) "principal balance" means the cash sale price of the goods or 05 services that [WHICH] are the subject matter of a retail installment contract less the 06 amount of the buyer's down payment in money or goods or both, plus 07 (A) the amounts for insurance and official fees included in the 08 contract if a separate identified charge is made and stated in the contract for 09 insurance and official fees; and 10 (B) if the retail installment contract is for the sale of a 11 motor vehicle, the amount, if any, that the seller agrees to pay to discharge 12 an outstanding obligation of the buyer under an existing motor vehicle 13 agreement, loan, installment sales contract, or lease; 14 * Sec. 2. AS 45.25 is amended by adding a new section to article 5 to read: 15 Sec. 45.25.630. Discharged amounts in motor vehicle leases. (a)
01 Notwithstanding another provision of law to the contrary, if the amount to be paid by a 02 lessee under a motor vehicle lease includes a discharged amount, the inclusion of the 03 discharged amount in the amount to be paid under the lease is not a loan of the 04 discharged amount and is not subject to any law that regulates the disclosure of 05 interest, the charging of interest, the amount of interest rates, or the lending of money. 06 (b) In this section, "discharged amount" means the amount, if any, that 07 discharges an outstanding obligation of the lessee under an existing motor vehicle 08 agreement, loan, installment sales contract, or lease.