16a-3-302. (UCCC) Cross-collateral.
16a-3-302
16a-3-302. (UCCC) Cross-collateral.
(1) In addition to contracting for a security interest pursuant to the
provisions on security in sales or leases (section 16a-3-301), a seller in
a consumer credit sale may secure the debt arising from the sale by
contracting for a security interest in other property if as a result of a
prior sale the seller has an existing security interest in the other
property. The seller may also contract for a security interest in the
property sold in the subsequent sale as security for the previous debt.
(2) If the seller contracts for a security interest in other property
pursuant to this section, the rate of credit service charge thereafter on
the aggregate unpaid balances so secured may not exceed that permitted if
the balances so secured were consolidated pursuant to the provisions on
consolidation involving a refinancing (subsection (1) of section
16a-2-505). The seller has a reasonable time after so contracting to make
any adjustments required by this section. "Seller" in this section does not
include an assignee not related to the original seller.
History: L. 1973, ch. 85, § 48; Jan. 1, 1974.