Disclosure of credit terms should have the content and form required under the federal Truth in Lending Act (15 U.S.C.A. §§ 1601 et seq.) and applicable regulations (Regulation Z, 12 C.F.R. § 226), and under state consumer credit laws to the extent that they differ from the federal Act. In connection with specified installment sales and other consumer credit transactions, these enactments require written disclosure and advice as to finance charges, annual percentage rates and other matters relating to credit. Under the federal Act, the disclosures may be set forth in the contract document itself or in a separate statement or statements.
A federal notice regarding preservation of the consumer's claims and defenses is required on all consumer credit contracts by Federal Trade Commission regulation. 16 C.F.R. § 433.2. The notice must appear in 10-point bold type or print and must be worded as set forth in the above form.
The Massachusetts Security Agreement for Retail Installment Sale of Automobile, Car, or Motor Vehicle is a legal document that outlines the terms and conditions of a retail installment sale in Massachusetts. This agreement lays out the rights and responsibilities of both the buyer and the seller when a car or motor vehicle is being sold on an installment basis. Known as a security agreement, it serves as a protection for the seller in case the buyer defaults on their payments. In the state of Massachusetts, there are two common types of security agreements for retail installment sales of automobiles, cars, or motor vehicles: the Traditional Security Agreement and the Collateral Assignment of Certificate of Title. 1. Traditional Security Agreement: This type of agreement is the most commonly used in Massachusetts. It establishes a lien holder's interest in the vehicle being sold until the buyer fully repays the loan. The lien holder is typically a financial institution or another party that provides the necessary funds for the purchase of the vehicle. The agreement spells out the terms of the loan, including the repayment schedule, interest rate, and any late fees or penalties that may apply. It also mentions any insurance requirements and stipulates that the buyer must maintain comprehensive and collision coverage on the vehicle until the loan is fully paid off. 2. Collateral Assignment of Certificate of Title: This type of agreement is less common but may be used when the buyer is obtaining financing from a private party or a non-traditional lender. In this case, the seller assigns the certificate of title to the lender as security for the loan. The lender becomes the lien holder and has the right to repossess the vehicle in case of default. The agreement establishes the repayment terms, interest rate, insurance requirements, and any other conditions that both parties must adhere to. Both types of security agreements provide protection for the seller and allow the buyer to purchase a vehicle on an installment basis. It is crucial for both parties to read and understand the agreement thoroughly before signing, as it can have legal implications in case of default or disagreement. Keywords: Massachusetts, security agreement, retail installment sale, automobile, car, motor vehicle, lien holder, Traditional Security Agreement, Collateral Assignment of Certificate of Title, loan, repayment schedule, interest rate, late fees, penalties, insurance requirements, comprehensive coverage, collision coverage, financing, private party, non-traditional lender, certificate of title, repossession, default, legal implications.
