Senate and House of Repre- Sentatives in General Court Assembled, and by the Authority of the Same, As Follows: 1 Section 1

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Senate and House of Repre- Sentatives in General Court Assembled, and by the Authority of the Same, As Follows: 1 Section 1 HOUSE 2430 Mr. Roberts of Boston moves that this bill be substituted for a bill with the same title (House, No. 2303). June 21. Cftc OLommontoealtf) of e^assacfnisettg In the Year One Thousand Nine Hundred and Thirty-Nine. An Act relative to contracts of conditional sale OF PERSONAL PROPERTY. Be it enacted by the Senate and House of Repre- sentatives in General Court assembled, and by the authority of the same, as follows: 1 Section 1. Chapter two hundred and fifty-five 2 of the General Laws is hereby amended by striking out 3 sections eleven to thirteen, inclusive, as appearing in 4 the Tercentenary Edition, and section thirteen A, 5 inserted by section one of chapter three hundred and 6 forty-eight of the acts of nineteen hundred and thirty- -7 five, and inserting in place thereof the four following 8 new sections: 9 Section 11. Except as otherwise provided in sec- -10 tions fifty-five and fifty-six of chapter one hundred and 11 fifty-nine, if a contract for the sale of a motor vehicle 12 or vehicles or any other article or articles of personal 13 property, in the form of a lease or otherwise, is made 14 on the condition that the title thereto shall not pass 15 until the purchase money has been fully paid, and the 16 vendor upon default takes from the vendee possession 2 HOUSE —No. 2430. [June 17 of the property, the vendee, within fifteen days after 18 such taking, may redeem the property so taken, by 19 paying to the vendor the full amount then unpaid, with 20 interest and all lawful charges and expenses due to the 21 vendor. 22 Section 12. Each conditional sale which includes 23 one or more articles of personal property shall be em- -24 bodied in a single written contract, which shall con- -25 tain the entire agreement between the parties and shall 26 specifically set forth a caption labelled, “total time 27 price”, in print of not less than ten point boldface 28 type on the first page above the signature of the ven- -29 dee, which price shall include the selling price of the 30 article so sold, interest, finance, insurance, and any 31 other charges. Such contract, in addition to any other 32 information required by law, shall specifically set 33 forth the selling price, interest charge, insurance 34 charge, if any, specifying all insurance coverage in- -35 eluded in the charge, any finance charge and any other 36 charge which is made, and shall also specifically set 37 forth the down payment, if any, the deferred balance, 38 and the number and amount of weekly, monthly, or 39 other instalment payments. No other evidence of 40 obligation than such contract shall be required to be 41 signed by the purchaser. If a contract of conditional 42 sale does not substantially contain the subject matter 43 as herein required, then such contract shall be null 44 and void in its entirety unless such omission shall be 45 unintentional. ( 46 Section 13. A copy of every such contract shall be 47 furnished to the vendee at the time of its execution. 48 When a payment is made by the vendee under the 49 terms of any such contract, on request of the vendee, 50 such payment shall be endorsed on the contract and 1939.] HOUSE —No. 2430. 3 51 on such copy or shall be set forth in a receipt given to 52 the vendee. Any such receipt shall include the 53 amount of the payment made and the balance due on 54 the contract, with a specific identification of the con- -55 tract to which the payment is applied. Failure of the 56 vendor through negligence to comply with any provi- -57 sion of this section shall suspend his rights under the 58 contract while such failure continues. His wilful or 59 fraudulent failure so to comply shall be a waiver by 60 him of the condition of the sale. 61 Section ISA. No instrument evidencing a condi- -62 tional sale of personal property shall be valid unless it 63 contains a provision that, in case of repossession and 64 sale of such personal property for default in payment 65 of any part of the total time price, all sums paid on 66 account of such price and any sum remaining from 67 the proceeds of a sale of such repossessed personal 68 property after deducting the reasonable expenses of 69 such repossession and sale shall be applied in reduc- -70 tion of such price, and that, if the net proceeds of such 71 sale exceed the balance due on such price, the sum re- -72 maining shall be paid to the vendee. This section 73 shall not apply to an instrument evidencing a condi- -74 tional sale of personal property affixed or attached to 75 real estate in any other manner than by an electrical 76 connection. 1 Section 2. Said chapter two hundred and fifty- -2 five is hereby further amended by striking out sec- -3 tion thirteen C, as most recently amended by chap- -4 ter three hundred and sixty-seven of the acts of 5 nineteen hundred and thirty-eight, and section thir- -6 teen D, inserted by chapter three hundred and fifteen 7 of the acts of nineteen hundred and thirty-seven, and 4 HOUSE— No. 2430. [June 8 inserting in place thereof the five following new 9 sections: 10 Section 13C. Thirty days at least before taking 11 possession of household furniture or other household 12 effects for default of the vendee in the payment of 13 money, the vendor shall demand in writing of the 14 vendee or other person in charge of said furniture 15 or effects the balance then due, and shall furnish 16 to said vendee or other person an itemized statement 17 of the account showing the amount due thereon. If 18 said vendee or other person can by the exercise of 19 reasonable care and diligence be found by the vendor, 20 the fifteen days during which his right of redemption 21 exists under section eleven shall not begin to run 22 until said demand has been made, said statement 23 furnished and said thirty days have expired. 24 Section 13D. For a period of five days after de- -25 fault by the vendee in the payment of any instalment 26 under a contract of conditional sale of personal prop- -27 erty, the vendee shall not be required to pay a late 28 charge, collection charge or other penalty to the 29 vendor for such default. 30 Section 13E. Except as otherwise provided in sec- -31 tion thirteen C, whenever a vendee under a contract 32 of conditional sale of personal property is in default 33 in the performance of any condition in such contract, 34 the vendor or his assigns may take possession of the 35 property in accordance with the terms of the contract; 36 but unless possession of the property can be obtained 37 without breach of the peace, it shall be taken only 38 by legal process. 39 Section 13F. If the vendor or his assigns under a 40 contract of conditional sale of personal property takes 41 possession of the property because of default by the 1939.] HOUSE -No. 2430. O 42 vendee in any of the terms of the contract, and if 43 the vendee has paid at least fifty per cent of the 44 selling price as set forth in such contract; then, if 45 the vendee so requests in writing by registered mail 46 addressed to the vendor or his assigns within ten days 47 after the date of repossession of the property by the 48 vendor or his assigns, a public auction shall be held 49 within ten days after the expiration of the fifteen 50 day period following the date of the repossession of 51 the property provided for redemption by section 52 eleven. Publication at least three days prior to the 53 sale of a notice thereof shall be made in a newspaper 54 published in the city or town where the property is 55 then held, or if there is no newspaper in such city or 56 town, then in a newspaper published in the county 57 where the property is then held. The vendee shall 58 with said request tender to the vendor or his assigns 59 the sum of ten dollars to defray the expenses of such 60 advertising and auction sale. Any sum remaining 61 from the proceeds of such sale after application to 62 the indebtedness of the vendee in accordance with 63 the terms of the contract shall be paid to the vendee. 64 The vendee shall be liable to the vendor or his assigns 65 for any deficiency. 66 Section 13G. Violation of any provision of section 67 twelve, thirteen, thirteen D, thirteen E or thirteen F 68 shall be punished by a fine of not less than one hun- -69 dred nor more than five hundred dollars. .
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