AN ACT TO AUTHORIZE GUARANTEED ASSET PROTECTION WAIVERS TO BE AUTHORIZED IN THIS STATE. Enacted June 26, 2013. Effective October 1, 2013.
Summary date: Jul 1 2013 - View summary
Summary date: Apr 15 2013 - View summary
Senate amendment to the 3rd edition makes the following changes. Provides that the act applies to guaranteed asset protection waivers entered into on or after October 1, 2013.
Summary date: Apr 10 2013 - View summary
Senate committee substitute to the 2nd edition makes the following changes. Amends the definition of creditor to include a vehicle dealer that arranges financing for a vehicle purchaser. Makes technical changes.
Summary date: Apr 2 2013 - View summary
Senate committee substitute makes the following changes to the 1st edition.
Provides for an effective date of October 1, 2013.
Summary date: Mar 19 2013 - View summary
Enacts new Article 46, Guaranteed Asset Protection Waivers, in GS Chapter 66. Defines guaranteed asset protection waiveras a contractual agreement between a creditor and a borrowerin which the creditor agrees to cancel or waive, for a separate charge, all or part ofthe amount due on a borrower's vehicle finance agreementin the event of a total physical damage loss or unrecovered theft of the vehicle. The guaranteed asset protection waiver may be a part of the vehicle finance agreement or it may be a separate addendum. Includes mandatory terms to be included in a guaranteed asset protection waiver and requires that those terms be written in clear, easily understood language. Provides terms and conditions for cancellation of the guaranteed asset protection waiver. Includes definitions for additional terms as they apply in this Article.
Provides that proposed Article 46 does not apply to an insurance policy under GS Chapter 58 except as provided in GS 66-443 or a debt cancellation or suspension contractoffered under 12 CFR Part 37, CFR Part 721, or any other federal law. Provides for a partial exemption from the provisions of this Article for commercial transactions. Provides thatnew GS 66-444 (terms that must be in the waiver), new GS 66-446(c) (compliance with the Truth in Lending Act), and new GS 66-447 (enforcement)do not apply to a guaranteed asset protection waiver offered in connection with a lease or retail installment sale associated with a commercial transaction.
Provides that guaranteed asset protection waivers are not insurance and the waivers andpersons administering, marketing, selling, or offering to sell the waivers to borrowers arenot subject to the provisions of GS Chapter 58 (Insurance Law). However, does permit creditors to elect to insure guaranteed asset protection waiver obligations under a contractual liability or similar policy issued by an insurer and provides the required terms that must be included in policies insuring guaranteed asset protection waivers.
Provides for enforcement of the provisions of this Article by the Attorney General. Authorizes the Attorney General, after proper notice and an opportunity for hearing, to order a creditor, administrator, or any person not in compliance with this Article to cease and desist from further guaranteed asset protection waiver operations that are in violation of this Article. Also provides that the Attorney General may impose a penalty of no more than $500 per violation and no more than $10,000 in the aggregate for all violations of a similar nature.
Includes additional miscellaneous provisions.Includes a severability clause to provide that if any provisions of the proposed act or its application are held to be invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provisions or applications.