16a-3-302.   (UCCC) Cross-collateral.(1) In addition to contracting for a security interest pursuant to theprovisions on security in sales or leases (section 16a-3-301), a seller ina consumer credit sale may secure the debt arising from the sale bycontracting for a security interest in other property if as a result of aprior sale the seller has an existing security interest in the otherproperty. The seller may also contract for a security interest in theproperty sold in the subsequent sale as security for the previous debt.

      (2)   If the seller contracts for a security interest in other propertypursuant to this section, the rate of credit service charge thereafter onthe aggregate unpaid balances so secured may not exceed that permitted ifthe balances so secured were consolidated pursuant to the provisions onconsolidation involving a refinancing (subsection (1) of section16a-2-505). The seller has a reasonable time after so contracting to makeany adjustments required by this section. "Seller" in this section does notinclude an assignee not related to the original seller.

      History:   L. 1973, ch. 85, § 48; Jan. 1, 1974.