MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Judiciary A
By: Representative Banks
AN ACT TO REQUIRE CONTRACTS TO BE WRITTEN IN LARGE PRINT; TO AMEND SECTIONS 63-19-31 AND 81-21-13, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. From and after July 1, 2020, all contracts shall be written in a font of at least ten (10) point. Any portion of a contract that is written in a font of less than ten (10) point shall be unenforceable.
SECTION 2. Section 63-19-31, Mississippi Code of 1972, is amended as follows:
63-19-31. (1) (a) A
retail installment contract shall be in writing, shall be signed by both the
buyer and the seller, and shall be completed as to all essential provisions * * * before the signing of the
contract by the buyer.
(b) From and after
July 1, 2020, the printed portion of the contract, other than instructions
for completion, shall be in at least * * * ten (10) point type. The contract
shall contain in a size equal to at least * * * twelve (12) point bold type:
(i) A specific statement that liability insurance coverage for bodily injury and property damage caused to others is not included, if that is the case; and
(ii) The following notice: "Notice to the Buyer: 1. Do not sign this contract before you read it or if it contains any blank spaces. 2. You are entitled to an exact copy of the contract you sign."
(c) The seller shall
deliver to the buyer, or mail to him or her at his or her address
shown on the contract, a copy of the contract signed by the seller. Until the
seller does so, a buyer who has not received delivery of the motor vehicle
shall have the right to rescind his or her agreement and to receive a
refund of all payments made and return of all goods traded in to the seller on
account of or in contemplation of the contract, or if such goods cannot be
returned, the value thereof. From and after July 1, 2020, any
acknowledgment by the buyer of the delivery of a copy of the contract shall be
in a size equal to at least * * * twelve (12) point bold type and, if
contained in the contract, shall appear directly above the buyer's signature.
(d) The contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the motor vehicle including its make, year model, model and identification numbers or marks.
(2) The contract shall contain the following items:
(a) The cash sale price of the motor vehicle;
(b) The amount of the buyer's down payment, and whether made in money or goods, or partly in money and partly in goods;
(c) The difference
between * * *
paragraphs (a) and (b);
(d) The amount, if any, included for insurance and other benefits specifying the types of coverage and benefits;
(e) The amount of official fees;
(f) The amount, if any, actually paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest, lien or lease interest on property traded in;
(g) The principal
balance, which is the sum of * * * paragraphs (c), (d), (e) and (f);
(h) The amount of the finance charge;
(i) The time balance,
which is the sum of * * *
paragraphs (g) and (h), payable in installments by the buyer to the
seller, the number of installments, the amount of each installment and the due
date or period thereof.
The above * * * paragraphs need not be stated in
the sequence or order set forth. Additional items may be included to explain
the calculations involved in determining the stated time balance to be paid by
the buyer. Notwithstanding any provision of this chapter to the contrary, in
any contract evidencing the sale of a commercial vehicle, the statement of the
amount of the finance charge ( * * * paragraph (h) * * * of this subsection) and the
amount of each installment ( * * * paragraph (i) * * * of this subsection) may be
calculated using the finance charge rate applicable to the transaction as of
the date of execution of the contract, notwithstanding the fact that such
finance charge rate may increase or decrease over the term of the contract
according to any formula or index set forth in the contract; * * * however, * * * under no circumstances may the variable
rate under such contract at any time exceed the finance charge limitations
found in Section 63-19-43 * * *, of this chapter.
(3) No retail installment
contract shall be signed by any party thereto when it contains blank spaces to
be filled in after it has been signed except that, if delivery of the motor
vehicle is not made at the time of the execution of the contract, the
identifying numbers or marks of the motor vehicle or similar information and
the due date of the first installment may be inserted in the contract after its
execution. The buyer's written acknowledgment, conforming to the requirements
of * * *
paragraph (c) of subsection (1) of this section, of delivery of a copy
of a contract shall be conclusive proof of such delivery, that the contract
when signed did not contain any blank spaces except as * * * provided in this section, and of
compliance with Sections 63-19-31 through 63-19-41 in any action or proceeding
by or against the holder of the contract.
SECTION 3. Section 81-21-13, Mississippi Code of 1972, is amended as follows:
81-21-13. A premium finance agreement shall:
(a) From and after
July 1, 2020, be dated and signed by or on behalf of the insured, and the
printed portion thereof shall be in at least * * * ten (10) point type;
(b) Contain the name and place of business of the insurance agent or broker negotiating the related insurance contract, the name and residence or place of business of the insured, the name and place of business of the premium finance company, a brief description of the insurance contracts involved and the amount of the premium; and
(c) Set forth the following items, where applicable:
(i) The total amount of the premium, less an itemized listing of any nonrefundable charges;
(ii) The amount of the down payment;
(iii) The principal balance, which is the difference between the amounts stated under subparagraphs (i) and (ii) of this paragraph;
(iv) The amount of the interest and the annual percentage rate;
(v) The balance payable by the insured, meaning the sum of amounts stated under subparagraphs (iii) and (iv) of this paragraph; and
(vi) The number of installments required, the amount of each installment expressed in dollars and the due date or period thereof.
SECTION 4. This act shall take effect and be in force from and after July 1, 2020.