HOUSE BILL No. 2812
An Act amending the uniform consumer credit code; relating to balloon payments;
amending K.S.A. 16a-3-308 and repealing the existing section.
Section 1. K.S.A. 16a-3-308 is hereby amended to read as follows:
16a-3-308. (a) With respect to a consumer credit transaction, other than
one pursuant to open end credit if any scheduled payment is more than
twice as large as the average of earlier scheduled payments, the consumer
has the right to refinance the amount of that payment at the time it is
due without penalty. The terms of the refinancing shall be no less favor-
able to the consumer than the terms of the original transaction. These
provisions do not apply to the extent that the payment schedule is ad-
justed to the seasonal or irregular income of the consumer or to a note
secured by a real estate mortgage.
(b) In accordance with rules and regulations adopted by the admin-
istrator, the provisions of this section shall not apply to a consumer loan
secured solely by a motor vehicle.
Sec. 2. K.S.A. 16a-3-308 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
Approved May 16, 2002.
Date Composed: 10/10/2002 Date Modified: 10/10/2002