CHAPTER 543

S.P. 602 - L.D. 1638

An Act To Amend the Maine Consumer Credit Code Regarding

Balloon Payments

Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, current Maine law prohibits automobile dealers from offering consumers a motor vehicle loan involving a final balloon payment unless the term of the loan is for a minimum period of 4 years; and

Whereas, this statutory provision puts Maine automobile dealers at a competitive disadvantage and limits the financing options that dealers can make available to consumers; and

Whereas, this legislation would allow Maine automobile dealers to offer financing options with balloon payments for terms of less than 4 years if the contract contains adequate protections for Maine consumers, including the right to return the vehicle in lieu of the final payment; 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: