Definitions
This law sets up the definitions for words used in Missouri rules about debt waivers for motor vehicles. A 'borrower' is someone who takes out a loan or lease for a vehicle. A 'creditor' is the lender, lessor, or seller who is owed the money. A 'debt waiver' is a contract where the creditor agrees to cancel or reduce money owed — either if the car is totaled or stolen (called a guaranteed asset protection waiver) or if the car has too much wear or extra miles at the end of a lease (called an excess wear and use waiver).
407.2030. Definitions. — For purposes of sections 407.2030 to 407.2055, the following terms mean:
(1) "", any person, other than an or , who performs or operational functions for programs;
(2) "Borrower", a debtor or buyer or under a ;
(3) "Creditor":
(a) The lender in a loan or transaction;
(b) The in a transaction;
(c) Any of motor vehicles;
(d) The in commercial retail installment transactions; or
(e) The of any person described in paragraphs (a) to (d) of this to whom the credit obligation is payable;
(4) "Debt waiver", any or ;
(5) "Excess wear and use waiver", a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or all or part of amounts that may become due under a borrower's as a result of excessive wear and use of a motor vehicle, which agreement shall be part of, or a separate to, the lease agreement. Excess wear and use waivers may also cancel or waive amounts due for excess ;
(6) "Guaranteed asset protection waiver", a contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement shall be part of, or a separate addendum to, the finance agreement. A guaranteed asset protection waiver may also provide, with or without a separate charge, a that waives an amount, or provides a borrower with a credit, toward the purchase of a replacement motor vehicle.
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Source & history notes
(L. 2023 S.B. 398)
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