State Codes and Statutes

Statutes > Nebraska > Chapter45 > 45-1106

45-1106. Guaranteed asset protection waiveragreement; authorized terms; cancellation or early termination of financeagreement; refund; calculation; disposition.(1) Guaranteed asset protection waiveragreements may be cancelable or noncancelable after the free-look period.A creditor or the creditor's designee may offer a borrower a waiver that doesnot provide for a refund if the creditor or the creditor's designee also offersthe borrower a bona fide option to purchase a comparable waiver that providesfor a refund. Guaranteed asset protection waivers shall provide that if aborrower cancels a waiver within the free-look period, the borrower will beentitled to a full refund of the purchase price, so long as no benefits havebeen provided. In the event benefits have been provided, the borrower mayreceive a full or partial refund pursuant to the terms of the waiver.(2) In theevent of a borrower's cancellation of the guaranteed asset protection waiveror early termination of the finance agreement, after the agreement has beenin effect beyond the free-look period, the borrower may be entitled to a refundof any unearned portion of the purchase price of the waiver unless the waiverprovides otherwise. The creditor or the creditor's designee shall calculatethe amount of the refund using a method at least as favorable to the borroweras the actuarial method. In order to receive a refund, the borrower, in accordancewith any applicable terms of the waiver, must provide a written request tothe creditor or the creditor's designee within ninety days after the eventterminating the waiver or finance agreement.(3) If the cancellationof a guaranteed asset protection waiver occurs as a result of a default underthe finance agreement or the repossession of the motor vehicle associatedwith the finance agreement, or any other termination of the finance agreement,any refund due may be paid directly to the creditor or the creditor's designeeand applied as set forth in subsection (4) of this section.(4) Any cancellationrefund under this section may be applied by the creditor or the creditor'sdesignee as a reduction of the amount owed under the finance agreement unlessthe borrower can show that the finance agreement has been paid in full. SourceLaws 2010, LB571, § 6.