Page:United States Statutes at Large Volume 85.djvu/699

 85 STAT.]

PUBLIC LAW 9 2 - 2 0 0 - D E C. 17, 1971

669

"§28-3802. Definitions "As used in this chapter— "(1) 'revolving credit account' means a revolving credit account as defined in section 28-3701 of this subtitle. ^"'*' P- ^^''' "(2) 'consumer credit sale' means a sale of goods or services in which— " (A) credit is granted by a person who regularly engages as a seller in credit transactions of the same kind; " (B) the buyer is a natural person; " (C) the goods or services are purchased primarily for a personal, family, household, or agricultural purpose; " (D) either the debt is payable in installments or a finance ,^ ^ ^.., charge is made; and " (E) the amount financed does not exceed $25,000. The term includes any contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the property and services involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the property upon full compliance with his obligations under the contract. "(3) 'direct installment loan' means a direct installment loan as that term is used in section 28-3308 of this subtitle and does ^"'*' P- ^^5not include a loan secured on real estate or a direct motor vehicle Ante, p. 666, installment loan covered by chapter 36 of this subtitle. " (4) 'cross collateral' means an arrangement wherein a seller in a 'consumer credit sale' secures a debt arising from the sale by contracting for a security interest in other property if as a result of a prior sale the seller has an existing security interest in the other property. The seller may also contract for a security interest in the property sold in the subsequent sale as a security for the previous debt. "With respect to a consumer credit sale or direct installment loans except for revolving credit accounts: "(1) No creditor shall at any time enter into an agreement which contains or anticipates a schedule of payments under which any one payment is not equal or substantially equal to all other payments, excluding any final payment which is less than the average of previous payments or any down payment received by the creditor contemporaneously with or prior to the consummation of the transaction, or under which the intervals between any consecutive payments differ substantially. "(2) Notwithstanding any provision of this section, where a consumer's livelihood is dependent upon seasonal or intermittent income, the parties may agree in a separate writing that one or more payments or the intervals between one or more payments may be reduced or expanded in accordance with the needs of the consumer if such payments are expressly related to the consumer's income. The separate writing shall contain a conspicuous notice directly above the signature line stating: ' I waive my right to have all payments to be made under this agreement in substantially equal amounts'. "(3) I n the event that the provisions of paragraph (2) apply, the consumer shall have the right at any time, without further cost or obligation, to revise the schedule of payments to conform both as to amounts and intervals to the average of all installments and intervals.
 * § 28-3803. Balloon payments

�