Whereas, in Public Law 2001, chapter 82 the Legislature amended the law to provide customers with the option of deferring a first payment of interest on the purchase of an automobile for a period of up to 12 months so as to allow customers the same options available to consumers in other states and to allow new car automobile dealers in the State to compete effectively by providing to Maine consumers the same products offered by dealers in neighboring states; and

Whereas, a question has arisen as to the interpretation of the language contained in Public Law 2001, chapter 82; and

Whereas, the Department of Professional and Financial Regulation has issued Joint Advisory Ruling #109, which addresses the questions raised in connection with that law; and

Whereas, a delay in amending the law will affect transactions occurring daily throughout the State to the detriment of consumers and businesses; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 9-A MRSA §3-308, sub-§3, as amended by PL 2001, c. 82, §1, is further amended to read:

3. A schedule of payments may provide for the deferral of the first periodic payment subsequent to any down payment for a period of not more than 12 months, except that interest or costs may not accrue in connection with the deferral of the first periodic payment if the deferral is for a period of time in excess of 90 days;

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill clarifies that if a deferral of a first period payment is for an excess of 90 days then no interest or costs may