Arizona HB 2220: motor vehicle title loans; prohibition

Bill Text

HB2220 - 532R - I Ver 

 REFERENCE TITLE: motor vehicle title loans; prohibition

 State of Arizona

 House of Representatives

 Fifty-third Legislature

 Second Regular Session

 2018

 HB 2220

 Introduced by 

 Representatives 
 Salman: Alston, Andrade, Blanc, Bolding, Cardenas, Ch�vez, Clark, Descheenie, 
 Espinoza, Fernandez, Gonzales, Powers Hannley, Rios, Saldate, Senators 
 Mendez, Peshlakai

AN 
ACT

amending sections 44‑281, 44‑286 
and 44‑291, Arizona Revised Statutes; relating to motor vehicle title 
loans.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it 
enacted by the Legislature of the State of Arizona:

Section 1. Section 44-281, Arizona Revised Statutes, 
is amended to read:

START_STATUTE44-281. Definitions

In this 
article, unless the context otherwise requires:

1. "Administrator" 
means the superintendent of financial institutions.

2. "Cash 
sale price" means the price stated in a retail installment contract for 
which the seller would have sold to the buyer, and the buyer would have bought 
from the seller, the motor vehicle which that is the subject matter of the 
retail installment contract, if such sale had been a sale for cash instead of a 
retail installment transaction. The cash sale price may include 
charges for accessories and their installation and for delivery, and servicing, 
repairing or improving the motor vehicle, and for charges for other costs that 
are necessary or incidental to the transaction and that the seller furnishes or 
agrees to pay on behalf of the buyer, including taxes, assessor's fees, license 
fees and fees for filing, recording or otherwise perfecting or releasing a 
reserved title or lien, and may include a reasonable charge for the seller's 
services.

3. "Finance 
charge" means the amount agreed upon on between the buyer and the seller, 
as limited herein, which in determining the cost of the motor vehicle is added 
to the aggregate of the following: The cash sale price and the 
amount, if any, included for insurance and other benefits where a separate cost 
is assigned thereto.

4. "Holder" 
of a retail installment contract means the retail seller of the motor vehicle 
under or subject to the contract or, if the contract is purchased by a sales 
finance company or other assignee, the sales finance company or other assignee.

5. "Motor 
vehicle" means any self‑propelled device in or by which any person 
or property is or may be transported or drawn on a public highway, except:

(a) Devices 
that move upon on or are guided by a track or 
travel through the air.

(b) The 
following, if not designed primarily for highway transportation, but which that may incidentally be operated on a 
public highway:

(i) Tractors.

(ii) Buses.

(iii) Trucks.

(iv) Power 
shovels.

(v) Road 
machinery.

(vi) Agricultural 
machinery.

6. "Person" 
means an individual, partnership, association, trust, corporation, or other 
legal entity.

7. "Retail 
buyer" or "buyer" means a person who buys a motor vehicle from a 
retail seller, not for the purpose of resale, and who executes a retail 
installment contract in connection therewith.

8. "Retail 
installment contract" or "contract":

(a) Means 
an agreement, entered into in this state, pursuant to which the title to or a 
lien upon on the motor vehicle, which is the subject matter of a retail 
installment transaction, is retained or taken by a retail seller from a retail 
buyer as security for the buyer's obligation. 

(b) Includes: 

(i) a conditional sales 
contract and a contract for the bailment or leasing of a motor vehicle by which 
the bailee or lessee contracts to pay as compensation for its use a sum 
substantially equivalent to or in excess of its value and by which it is agreed 
that the bailee or lessee is bound to become, or has the option of becoming, 
the owner of the motor vehicle for no other or a nominal consideration upon on full compliance with the 
provisions of the contract.

(ii) A 
secondary motor vehicle finance transaction.

9. "Retail 
installment transaction" means any transaction evidenced by a retail 
installment contract entered into between a retail buyer and a retail seller 
wherein the retail buyer buys a motor vehicle from the retail seller at a cost 
payable in one or more deferred installments.� The cash sale price of the motor 
vehicle, the amount included for insurance if a separate charge is made and the 
finance charge shall together constitute the cost of the motor vehicle.

10. "Retail 
seller" or "seller" means a person who sells a motor vehicle to 
a retail buyer for purposes other than resale under or subject to a retail 
installment contract. For the purposes of paragraph 12 of this 
section "seller" means a person who sells and retains the use of the 
motor vehicle.

11. "Sales 
finance company":

(a) Means 
a person engaged, in whole or in part, in the business of purchasing retail 
installment contracts from one or more retail sellers.

(b) Includes 
a person engaged, in whole