Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-303.(UCCC) Debt secured by cross-collateral.
(1) If debts arising from two or more consumer credit sales, other than
sales pursuant to open end
credit, are secured by cross-collateral (section 16a-3-302) or
consolidated into one debt payable on a single schedule of payments, and
the debt is secured by security interests taken with respect to one or
more of the sales, payments received by the seller after the taking of
the cross-collateral or the consolidation are deemed, for the purpose of
determining the amount of the debt secured by the various security
interests, to have been first applied to the payment of the debts
arising from the sales first made. To the extent debts are paid
according to this section, security interests in items of property
terminate as the debts originally incurred with respect to each item is
paid.
(2) Payments received by the seller upon an open end credit account
are deemed, for the purpose of determining the amount of the debt
secured by the various security interests, to have been applied first to
the payment of finance charges in the order of their entry to the
account and then to the payment of debts in the order in which the
entries to the account showing the debts were made.
(3) If the debts consolidated arose from two or more sales made on
the same day, payments received by the seller are deemed, for the
purpose of determining the amount of the debt secured by the various
security interests, to have been applied first to the payment of the
smallest debt.
History: L. 1973, ch. 85, § 49; L. 1981, ch. 93, § 8; July 1.
Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-303.(UCCC) Debt secured by cross-collateral.
(1) If debts arising from two or more consumer credit sales, other than
sales pursuant to open end
credit, are secured by cross-collateral (section 16a-3-302) or
consolidated into one debt payable on a single schedule of payments, and
the debt is secured by security interests taken with respect to one or
more of the sales, payments received by the seller after the taking of
the cross-collateral or the consolidation are deemed, for the purpose of
determining the amount of the debt secured by the various security
interests, to have been first applied to the payment of the debts
arising from the sales first made. To the extent debts are paid
according to this section, security interests in items of property
terminate as the debts originally incurred with respect to each item is
paid.
(2) Payments received by the seller upon an open end credit account
are deemed, for the purpose of determining the amount of the debt
secured by the various security interests, to have been applied first to
the payment of finance charges in the order of their entry to the
account and then to the payment of debts in the order in which the
entries to the account showing the debts were made.
(3) If the debts consolidated arose from two or more sales made on
the same day, payments received by the seller are deemed, for the
purpose of determining the amount of the debt secured by the various
security interests, to have been applied first to the payment of the
smallest debt.
History: L. 1973, ch. 85, § 49; L. 1981, ch. 93, § 8; July 1.
Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-303.(UCCC) Debt secured by cross-collateral.
(1) If debts arising from two or more consumer credit sales, other than
sales pursuant to open end
credit, are secured by cross-collateral (section 16a-3-302) or
consolidated into one debt payable on a single schedule of payments, and
the debt is secured by security interests taken with respect to one or
more of the sales, payments received by the seller after the taking of
the cross-collateral or the consolidation are deemed, for the purpose of
determining the amount of the debt secured by the various security
interests, to have been first applied to the payment of the debts
arising from the sales first made. To the extent debts are paid
according to this section, security interests in items of property
terminate as the debts originally incurred with respect to each item is
paid.
(2) Payments received by the seller upon an open end credit account
are deemed, for the purpose of determining the amount of the debt
secured by the various security interests, to have been applied first to
the payment of finance charges in the order of their entry to the
account and then to the payment of debts in the order in which the
entries to the account showing the debts were made.
(3) If the debts consolidated arose from two or more sales made on
the same day, payments received by the seller are deemed, for the
purpose of determining the amount of the debt secured by the various
security interests, to have been applied first to the payment of the
smallest debt.
History: L. 1973, ch. 85, § 49; L. 1981, ch. 93, § 8; July 1.