Section 616 - Transfer of installment sale contractA. The seller of a motor vehicle under an installment sale contract, executed in the Commonwealth of Pennsylvania, shall not sell, transfer or assign the obligation represented by such contract to any person in Pennsylvania, or elsewhere, who is not licensed as a sales finance company pursuant to the provisions of this act.B. A sales finance company, licensed pursuant to the provisions of this act, shall not sell, transfer or assign the obligation represented by a motor vehicle installment sale contract, executed in the Commonwealth of Pennsylvania, which it has lawfully acquired, to any other person in Pennsylvania, or elsewhere, who is not licensed as a sales finance company pursuant to the provisions of this act.C. Whenever an installment sale contract is lawfully sold, transferred or assigned to a person who is licensed as a sales finance company, pursuant to the provisions of this act, until the new holder furnishes to the buyer in such contract a written notice of such sale, transfer or assignment that sets forth the name and address of the new holder authorized to receive future payments on such contract, any payment or tender of payment made to and any service of notice on the last known holder by the buyer shall be binding upon any subsequent holder.D. The provisions of this section shall not apply to an assignment of an aggregation of installment sale contracts, which is executed by a seller or sales finance company only as a security interest securing payment or performance of a bona fide commercial loan, obtained at lawful rates of interest from a person regularly engaged in the business of lending money on the security of such assigned collateral or amounts due pursuant to a security or debt instrument, and under which, in the absence of default or other bona fide breach of the loan contract, ownership of the assigned contracts remains vested in the assignor and collection of payments on such assigned contracts is made by the assignor; And provided, such assignment and loan contracts are not for the purpose of evading or circumventing the provisions of this act.E. Whenever an installment sale contract, which has been lawfully acquired by a sales finance company, is in default, the holder may resell, retransfer or reassign such contract to the installment seller from whom such contract was originally acquired. Until the new holder furnishes to the buyer in such contract a written notice of such resale, retransfer or reassignment which sets forth the name and address of the new holder authorized to receive future payments on such contract, and the unpaid time balance and the accrued default charges due under the contract if any, any payment or tender of payment made to and any service of notice on the last known holder by the buyer shall be binding upon any subsequent holder.1947, June 28, P.L. 1110, § 16. Amended 1959, Nov. 19, P.L. 1529, § 1; 2002, Dec. 9, P.L. 1446, No. 186, § 11, effective in 90 days.