Article 3. Provisions of Retail Installment Contracts - California Civil Code Section 1803.3

1803.3.  Except as provided in Article 8 (commencing with Section
1808.1) of this chapter, a contract shall contain the following:
   (a) The names of the seller and the buyer, the place of business
of the seller, the residence or place of business of the buyer as
specified by the buyer and a description of the goods or services
sufficient to identify them. Services or multiple items of goods may
be described in general terms and may be described in detail
sufficient to identify them in a separate writing.
   (b) Every contract subject to this chapter shall contain the
disclosures required by Regulation Z whether or not Regulation Z
applies to the transaction. In addition, to the extent applicable,
the contract shall contain the other disclosures and notices required
by, and shall satisfy the requirements and limitations of, this
section. The disclosures required by subdivision (c) may be itemized
or subtotaled to a greater extent than as required by that
subdivision and shall be made together and in the sequence set forth
in that subdivision. No particular terminology is required to
disclose the items set forth in subdivision (c) except as therein
expressly provided. Except as otherwise provided by this subdivision
(b), these disclosures and notices may appear in the contract in any
location or sequence and may be combined or interspersed with other
provisions of the contract.
   (c) The contract shall contain the following disclosures, as
applicable, which shall be labeled "itemization of the amount
   (1) (A) The cash price, exclusive of taxes imposed on the sale.
   (B) Taxes imposed on the sale.
   (C) The total of the above.
   (2) An itemization of the amount to be paid to any public officer
for official fees.
   (3) The aggregate amount of premiums agreed, upon execution of the
contract, to be paid for policies of insurance included in the
contract, excluding the amount of any insurance premium included in
the finance charge.
   (4) A subtotal representing the sum of the foregoing items.
   (5) The amount of the buyer's downpayment, which downpayment shall
not include any administrative finance charge charged, received, or
collected by the seller pursuant to subdivision (c) of Section 1805.1
and as shown as item (6), itemized to show the following:
   (A) The net agreed value of the property being traded in.
   (B) The amount of any portion of downpayment to be deferred until
not later than the due date of the second regularly scheduled
installment under the contract and which is not subject to a finance
   (C) The amount of any manufacturer's rebate applied or to be
applied to the downpayment.
   (D) The remaining amount paid or to be paid by the buyer as a
   (6) The amount of any administrative finance charge, labeled
"prepaid finance charge."
   (7) The difference between item (4) and the sum of items (5) and
(6), labeled "amount financed."
   (d) If the payment of all or a portion of the downpayment is to be
deferred, the deferred payment shall be reflected in the payment
schedule disclosed pursuant to Regulation Z.
   (e) If the downpayment includes property being traded in, the
contract shall contain a brief description of that property.
   (f) (1) Where the contract includes a finance charge determined on
the precomputed basis, the contract shall identify the method of
computing the unearned portion of the finance charge in the event of
prepayment in full of the buyer's obligation and contain a statement
of the amount or method of computation of any charge that may be
deducted from the amount of any such unearned finance charge in
computing the amount that will be credited to the obligation or
refunded to the buyer. Reference to the Rule of 78's, the sum of the
digits, the sum of the periodic time balances or the actuarial method
shall constitute a sufficient identification of the method of
computing the unearned portion of the finance charge.
   (2) Where the contract includes a finance charge which is
determined on the simple-interest basis but provides for a minimum
finance charge in the event of prepayment in full, the contract shall
contain a statement of that fact and the amount of the minimum
finance charge or its method of calculation.
   (g) The contract shall contain an itemization of any insurance
included as part of the amount financed disclosed pursuant to
paragraph (3) of subdivision (c) and of any insurance included as
part of the finance charge. The itemization shall identify the type
of insurance coverage and the premium charged therefor, and, if the
insurance expires before the date of the last scheduled installment
included in the repayment schedule, the term of the insurance shall
be stated.

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Last modified: February 16, 2015