Section 613 - Requirements as to Contracts and Separate DisclosureA. Every installment sale contract shall be in writing and shall contain all of the agreements between the buyer and the seller relating to the installment sale of the motor vehicle sold and shall be signed by both the buyer and the seller.B. Every installment sale contract shall be completed as to all essential provisions prior to the signing of such contract by the buyer.C. An exact copy of the installment sale contract shall be furnished by the seller to the buyer at the time the buyer signs such contract. Such buyer's copy of the contract shall contain the signature of the seller identical with such signature on the original contract. Such copy shall be furnished to the buyer without charge.D. Every installment sale contract shall contain the following notice, printed prominently and in the form indicated in twelve (12) point type, or larger, directly above the space provided in the contract form for the signature of the buyer: "Notice to Buyer.
Do not sign this contract in blank.
You are entitled to an exact copy of the contract you sign.
Keep it to protect your legal rights."
Provided, That in lieu of the word "Buyer" there may be substituted either of the words "Lessee" or "Mortgagor" and in lieu of the word "contract" there may be substituted either of the words "lease" or "mortgage."
E. The seller shall obtain from the buyer a written acknowledgment of the delivery of the copy of the contract to the buyer. Such acknowledgment shall be printed in twelve (12) point type, or larger, and, if attached to the contract, it shall be printed below the buyer's signature to the contract and shall be independently signed.F. Every installment sale contract shall provide for payment of the time balance in substantially equal periods and in substantially equal amounts except: 1. When the buyer expects his income to vary because of seasonal employment, seasonal sales, use of accelerated depreciation for tax purposes or other known cause, the contract may provide for payment of the time balance in amounts which vary with such expected varying income.2. An installment sale contract for the sale of a heavy commercial motor vehicle shall be exempt from the requirement that payments must be for substantially equal periods and in substantially equal amounts.3. An installment sale of a new motor vehicle to a bona fide salesman or of motor vehicles to be used by him principally as a demonstrator shall be exempt from the equal payment schedule requirement of this section.4. Where the installment sale contract provides for fixed residual value financing. As used in this clause, "fixed residual value financing" shall mean the manner of purchase whereby a buyer who is listed as the owner on the title of the vehicle agrees to select and perform, at the conclusion of a predetermined schedule of installment payments made in substantially equal periods and in substantially equal amounts, one of the following options:(a) satisfy the balance of the contractual amount owing;(b) refinance any balance owing on the terms previously agreed upon at the time of executing the installment sale contract; or(c) surrender the motor vehicle at such time and manner agreed upon at the time of executing the installment sale contract.G. Prior to the execution of an installment sale contract by any party, the seller shall provide to the applicant buyer both an oral disclosure and a written disclosure in plain language separate from the installment sale contract to be signed by the applicant buyer prior to the signing of the installment sale contract. The executed, written disclosure shall be copied exactly and furnished by the seller to the applicant buyer at no cost at the time the buyer receives a copy of the installment sale contract. The separate disclosure required under this subsection shall: 1. Advise the applicant that the buyer's purchase of specific items related to acquiring the motor vehicle, including incidental items such as service contracts, warranties, debt cancellation agreements, debt suspension agreements and insurance products not required by section 17, but excluding options and accessories physically attached to the vehicle, is voluntary and is not required as a condition of the applicant buyer's receiving the installment sale contract loan.2. Be complete without any blank spaces.1947, June 28, P.L. 1110, § 13. Amended 1949, May 2, P.L. 812, §1; 1959, Dec. 17, P.L. 1889, §1; 1990, April 4, P.L. 110, No. 25, §2, effective in 60 days; 1992 , June 18, P.L. 307, No. 55, effective in 60 days; 2002, Dec. 9, P.L. 1446, No. 186, § 9, effective in 90 days.