§487A-1  Plain language in consumer
transactions.  (a)  Every written agreement entered into on or after July
1, 1981:



(1)  To which a consumer is a party, which involves
less than $25,000, and which is the subject of a transaction for personal,
family, or household purpose; or



(2)  Which is a lease of space to be occupied for
residential purposes for a term not exceeding five years;



shall be written in a clear and coherent manner
using words with common and everyday meanings, and appropriately divided and
captioned by its various sections.



(b)  Any creditor, seller, or lessor who fails
to comply with this chapter shall be liable in an amount equal to any actual
damages sustained by a suing party or a class in a class action, plus a penalty
of $50.  The total class action penalty against any creditor, seller, or lessor
shall not exceed $10,000 in any class action or series of class actions arising
out of the use by a creditor, seller, or lessor of an agreement which fails to
comply with this chapter.  No right of recovery shall exist for any class by
way of a class action, pursuant to this section, on any written agreement
executed prior to July 1, 1986.



(c)  No action under this chapter may be
brought after both parties to the agreement have fully performed their
obligations under such agreement, nor shall any creditor, seller, or lessor who
attempts in good faith to comply with this chapter be liable for such
penalties.



(d)  The provisions of this chapter shall not
apply:



(1)  To wills or trusts other than land trusts created
under the Land Trust Act, chapter 558;



(2)  To any document, which is not itself a written
agreement subject to this chapter, by virtue of the document being referred to
or incorporated within a written agreement which is subject to this chapter,
provided that the document has an independent purpose of its own;



(3)  To a legal description of real property; or



(4)  To words or phrases or form of agreement
required, authorized, or approved by state or federal law, rule, regulation,
governmental agency, or instrumentality.



(e)  A written agreement involves less than
$25,000 if it provides for:



(1)  The sale of property in which the full sales
price including any debt assumed is less than $25,000;



(2)  Services and the total payments are less than
$25,000 over the term of the agreement, or if no term is specified, within one
year from the date of the agreement;



(3)  A loan or advance of credit which is of a
principal amount less than $25,000;



(4)  A lease for which the total rent to be paid
during the term of the lease, not including any option or extension periods, is
less than $25,000.  In computing the total rent to be paid, the highest amount
of fixed rent shall be assumed to apply during any period in the term for which
the rent is not fixed; or



(5)  Any two or more of the above transactions and the
total amount of the price, payments, principal, and rent provided for in the
agreement is less than $25,000. [L 1980, c 36, pt of §1; am L 1982, c 187, §1]



 



Revision Note



 



  In subsection (e)(2), "or" substituted for
"of".



 



Law Journals and Reviews



 



  Report of the Committee for Plain Language Conveyancing. 16
HBJ 91.