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
Be it enacted by the Legislature of the State of Kansas:
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
twice as large as the average of earlier scheduled payments, the
has the right to refinance the amount of that payment at the time
due without penalty. The terms of the refinancing shall be no less
able to the consumer than the terms of the original transaction.
provisions do not apply to the extent that the payment schedule is
justed to the seasonal or irregular income of the consumer or to a
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
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 K.S.A. 16a-3-308 is hereby repealed.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.