§476-24  Additions to and consolidations of
credit sale contracts.  Where a buyer makes any subsequent purchases of
goods from a seller from whom the buyer has previously purchased goods under
one or more credit sale contracts which provide for the extension of closed-end
credit, and the amounts under the contract or contracts have not been fully
paid, the previous purchases may be included in and consolidated with one or
more of the subsequent contract or contracts, or the subsequent purchases may
be included in and consolidated with one or more of the prior contract or
contracts in which case a memorandum of such additional purchases shall be
prepared by the seller and inserted in or attached to the seller's counterpart
of the contract.  The memorandum shall set forth:



(1)  A description of the additional goods so
purchased;



(2)  The consolidated total indebtedness of the buyer;



(3)  The finance charge which shall include any
unearned portion of the old finance charge that is not credited to the prior
contract or contracts;



(4)  The annual percentage rate; and



(5)  The revised installment payments.



A copy of the memorandum shall be furnished to
the buyer prior to the due date of the first installment following the
subsequent purchase.



Every memorandum which complies with the
disclosure requirements of the federal Truth in Lending Act as of the date upon
which the contract is executed shall be deemed to comply with the disclosure
provisions of this section.



When such subsequent purchase is made, the
entire amount of all payments made previous to the subsequent purchase shall be
applied toward the payment of the previous purchase or purchases and each
payment thereafter received shall be first applied to the payment of purchases
first made.  To the extent purchases are paid for according to this section,
security interests in the goods which are the subject matter of the credit sale
shall terminate as the payment with respect to each purchase is made.



Unless otherwise expressly stated in the
contract, payments received by the seller upon a revolving charge account shall
be applied first to the payment of finance charges, then to late charges, costs
of action, and attorney's fees in the order of their entry to the account, and
then to the payment of purchases in the order in which the entries to the
account showing the purchases were made. [L 1961, c 102, pt of §1; Supp,
§201A-28; am L 1967, c 285, §7; HRS §476-29; am L 1970, c 54, §1; am and ren L
1984, c 86, pt of §1]



 



Revision Note



 



  In third paragraph, "this section" substituted for
"section 476-24".



  In fourth paragraph, "credit" substituted for
"retail installment".