Current through Register Vol. 54, No. 49, December 7, 2024
Section 39.7 - Sound investment practices in retail purchase financing(a) Any retail purchase financing investment shall conform to the requirements of Article 9 of the Uniform Commercial Code, as amended and supplemented (12A P. S. §§ 9-101-9-507) (Repealed).(b) No such loan may be granted unless it constitutes a first lien on the chattels described therein.(c) The promissory note on retail sales shall contain a provision that if the obligor sells the mobile home or removes therefrom any chattels described in the security agreement without prior written consent of the association, the entire balance remaining due on the note shall immediately become due and payable.(d) Mobile home chattel paper purchased pursuant to these regulations may provide for such interest rates and other charges as are permitted by the Motor Vehicle Sales Finance Act (69 P. S. §§ 601-637), and associations acquiring such paper pursuant hereto shall be entitled to receive such interest and charges as are permitted other motor vehicle sales finance company licensees.(e) No investment shall be made in any such retail paper unless the owner of the security has same properly titled with the Bureau of Motor Vehicle Division of the Department of Revenue of the Commonwealth and such title reflects that the association has a first lien thereon. The association must hold the encumbered title until such time as its lien is paid in full.(f) With the exception of the limitations specified in this chapter, associations shall be bound by the sections of the Motor Vehicle Sales Finance Act (69 P. S. §§ 601-637) pertaining to motor vehicle sales finance companies when making investments pursuant to this chapter, it being understood, however, that investments by an association in mobile home chattel paper shall be in conformity with sound practices in making such investments. Such chattel paper shall include provisions for protection of the association and shall provide specifically for protection with respect to insurance, personal and real property taxes, other governmental levies, maintenance and repairs, and for such other protection as may be lawful and appropriate. The association may pay taxes or other governmental levies, insurance premiums on policies giving dual protection to the association and the mortgagor, as their respective interests may appear, or similar charges for the protection of its security interest, and all such payments may, when lawful, be added to the monetary obligation of the obligor. The association shall, in a timely manner, take all steps necessary to protect its security interest under the applicable law.(g) The board of directors of the association shall adopt standards to be observed in making all loans provided for in this chapter. Such standards shall call for proper loan applications and credit reports in connection with each retail loan purchased by an association; the application and credit report shall be accompanied by the original manufacturer's invoice which shall be retained in the files of the association.(h) In the event of any conflict between the terms of this chapter, the Savings Association Code of 1967 (7 P. S. §§ 6020-1-6020-254), and the Motor Vehicle Sales Finance Act (69 P. S. §§ 601-637), or any of same, the association shall seek the advice of the Department which reserves the right to resolve such conflicts.