(a) This section applies to a loan secured in whole or in part by a lien on a motor vehicle.
(b) In the absence of default in the performance of any of the borrower’s obligations under the loan, the licensee may not accelerate the maturity of any part or all of the amount due thereunder or repossess the motor vehicle.
(c) If, after default by the borrower, the licensee repossesses or voluntarily accepts surrender of the motor vehicle, any person liable on the loan shall have a right to reinstate the loan and the licensee may not accelerate the maturity of any part or all of the loan prior to the expiration of the right to reinstate, unless the licensee reasonably and in good faith determines that:(1) The borrower or any other person liable on the loan by omission or commission intentionally provided false or misleading information of material importance on the credit application.(2) The borrower or any other person liable on the loan has concealed the motor vehicle or removed it from the territory in order to avoid repossession.(3) The borrower or any other person liable on the loan has committed or threatens to commit acts of destruction or has failed to take care of the motor vehicle in a reasonable manner, so that the motor vehicle has or may become substantially impaired in value.
(1) The borrower or any other person liable on the loan by omission or commission intentionally provided false or misleading information of material importance on the credit application.
(2) The borrower or any other person liable on the loan has concealed the motor vehicle or removed it from the territory in order to avoid repossession.
(3) The borrower or any other person liable on the loan has committed or threatens to commit acts of destruction or has failed to take care of the motor vehicle in a reasonable manner, so that the motor vehicle has or may become substantially impaired in value.
(d) Exercise of the right to reinstate the loan is limited to once in any 12-month period and twice during the term of the loan.
(e) This subsection governs the method by which a loan is reinstated with respect to curing events of default which were grounds for repossession or that occurred subsequent to repossession:(1) If the default is the result of the borrower’s failure to make any payment due under the loan, the borrower or any other person liable on the loan shall make the defaulted payments and pay any applicable delinquency charges.(2) If the default is the result of the borrower’s failure to keep and maintain the motor vehicle free from all encumbrances and liens of every kind, the borrower or any person liable on the loan shall either satisfy all the encumbrances and liens or, if the licensee satisfies the encumbrances and liens, the borrower or any other person liable on the loan shall the licensee for all reasonable costs and expenses incurred therefor.(3) If the default is the result of the borrower’s failure to keep and maintain insurance on the motor vehicle, the borrower or any other person liable on the loan shall either obtain the insurance or, if the licensee has obtained the insurance, the borrower or any other person liable on the loan shall reimburse the licensee for premiums paid and all reasonable costs and expenses incurred therefor.(4) If the default is the result of the borrower’s failure to perform any other obligation under the loan, unless the licensee has made a good faith determination that the default is so substantial as to be incurable, the borrower or any other person liable on the loan shall reimburse the licensee for all reasonable costs and expenses incurred therefor.(5) Additionally, the borrower or any other person liable on the loan shall reimburse the licensee for actual and necessary fees in an amount not exceeding the amount specified in subsection (a), paragraph (3), subparagraph (F) of section 833 paid in connection with the repossession of a motor vehicle to a repossession agency, and actual fees.
(1) If the default is the result of the borrower’s failure to make any payment due under the loan, the borrower or any other person liable on the loan shall make the defaulted payments and pay any applicable delinquency charges.
(2) If the default is the result of the borrower’s failure to keep and maintain the motor vehicle free from all encumbrances and liens of every kind, the borrower or any person liable on the loan shall either satisfy all the encumbrances and liens or, if the licensee satisfies the encumbrances and liens, the borrower or any other person liable on the loan shall the licensee for all reasonable costs and expenses incurred therefor.
(3) If the default is the result of the borrower’s failure to keep and maintain insurance on the motor vehicle, the borrower or any other person liable on the loan shall either obtain the insurance or, if the licensee has obtained the insurance, the borrower or any other person liable on the loan shall reimburse the licensee for premiums paid and all reasonable costs and expenses incurred therefor.
(4) If the default is the result of the borrower’s failure to perform any other obligation under the loan, unless the licensee has made a good faith determination that the default is so substantial as to be incurable, the borrower or any other person liable on the loan shall reimburse the licensee for all reasonable costs and expenses incurred therefor.
(5) Additionally, the borrower or any other person liable on the loan shall reimburse the licensee for actual and necessary fees in an amount not exceeding the amount specified in subsection (a), paragraph (3), subparagraph (F) of section 833 paid in connection with the repossession of a motor vehicle to a repossession agency, and actual fees.
(f) If the licensee denies the right to reinstatement under subsection (c) or paragraph (4) of subsection (e), the licensee shall have the burden of proof that the denial was justified in that it was reasonable and made in good faith. If the licensee fails to sustain the burden of proof, the licensee is not entitled to a deficiency.