§ 48.22.125. Vendor single-interest or collateral protection coverage -- Cancellation when borrower has obtained insurance -- Interest rate for financing
(1) The secured party shall cancel vendor single interest or collateral protection coverage charged to the borrower effective the date of receipt of proper evidence from the borrower that the borrower has obtained insurance to protect the secured party's interest. Proper evidence includes an insurance binder that is no older than ninety days from the date of issuance and that contains physical damage coverage as provided in the borrower's loan agreement with respect to the motor vehicle or vessel.
(2) If the underlying loan or extension of credit for the underlying loan is satisfied, the secured party may not require the borrower to maintain vendor single interest or collateral protection coverage that has been purchased.
(3) The interest rate for financing the cost of vendor single interest or collateral protection coverage may not exceed the interest rate applied to the underlying loan obligation.
[1994 c 186 § 4.]
Notes:
Effective date -- 1994 c 186 § § 1-5: See note following RCW 48.22.110.
Sections: Previous 48.22.060 48.22.070 48.22.080 48.22.085 48.22.090 48.22.095 48.22.100 48.22.105 48.22.110 48.22.115 48.22.120 48.22.125 48.22.130 48.22.135 48.22.140 Next
Last modified: April 7, 2009