§ 6A-9-615.1 Security interests –Cross collateral. – (a) In a credit transaction for the sale of consumer goods or services thecreditor may, subject to the provisions on termination of security interests insubsections (b) and (c) of this section, take a security interest in propertyof the buyer in addition to the goods sold or upon which services are performedonly if the creditor has an existing security interest in that property as aresult of a prior sale. If two (2) or more credit transactions are consolidatedinto a single transaction or charged pursuant to a revolving or open end creditplan, the creditor may take a security interest in property sold in thesubsequent transaction to secure the previous debt or debts outstanding.
(b) If debts arising from two (2) or more credit transactionsfor the sale of consumer goods or services:
(1) Are secured by cross collateral,
(2) Are consolidated into one debt payable on a singleschedule of payments, or
(3) Are charged pursuant to a revolving or open end creditplan, and the debts are secured by security interests taken with respect to oneor more of the transactions, payments received by the creditor after the takingof the cross collateral or the consolidation are deemed, for the purpose ofdetermining the amount of the debt secured by the various security interests,to have been applied to the payment of the transaction first made. To theextent debts are paid according to this subsection, security interests in itemsof property terminate as the debts originally incurred with respect to eachitem is paid.
(c) If the debts consolidated arose from two (2) or moretransactions made on the same day, or if two (2) or more items are purchased aspart of a single transaction, payments received by the creditor are deemed, forthe purpose of determining the amount of the debt secured by the varioussecurity interests, to have been applied first to the payment of the smallestdebt or the least expensive item.
(d) A security interest taken in violation of this section isunenforceable and any creditor who attempts to take such a security interestmay not retain or recover any finance, delinquency, collection, repossession,refinancing, or consolidation charges based upon the contract.
§ 6A-9-615.1 Security interests –Cross collateral. – (a) In a credit transaction for the sale of consumer goods or services thecreditor may, subject to the provisions on termination of security interests insubsections (b) and (c) of this section, take a security interest in propertyof the buyer in addition to the goods sold or upon which services are performedonly if the creditor has an existing security interest in that property as aresult of a prior sale. If two (2) or more credit transactions are consolidatedinto a single transaction or charged pursuant to a revolving or open end creditplan, the creditor may take a security interest in property sold in thesubsequent transaction to secure the previous debt or debts outstanding.
(b) If debts arising from two (2) or more credit transactionsfor the sale of consumer goods or services:
(1) Are secured by cross collateral,
(2) Are consolidated into one debt payable on a singleschedule of payments, or
(3) Are charged pursuant to a revolving or open end creditplan, and the debts are secured by security interests taken with respect to oneor more of the transactions, payments received by the creditor after the takingof the cross collateral or the consolidation are deemed, for the purpose ofdetermining the amount of the debt secured by the various security interests,to have been applied to the payment of the transaction first made. To theextent debts are paid according to this subsection, security interests in itemsof property terminate as the debts originally incurred with respect to eachitem is paid.
(c) If the debts consolidated arose from two (2) or moretransactions made on the same day, or if two (2) or more items are purchased aspart of a single transaction, payments received by the creditor are deemed, forthe purpose of determining the amount of the debt secured by the varioussecurity interests, to have been applied first to the payment of the smallestdebt or the least expensive item.
(d) A security interest taken in violation of this section isunenforceable and any creditor who attempts to take such a security interestmay not retain or recover any finance, delinquency, collection, repossession,refinancing, or consolidation charges based upon the contract.
§ 6A-9-615.1 Security interests –Cross collateral. – (a) In a credit transaction for the sale of consumer goods or services thecreditor may, subject to the provisions on termination of security interests insubsections (b) and (c) of this section, take a security interest in propertyof the buyer in addition to the goods sold or upon which services are performedonly if the creditor has an existing security interest in that property as aresult of a prior sale. If two (2) or more credit transactions are consolidatedinto a single transaction or charged pursuant to a revolving or open end creditplan, the creditor may take a security interest in property sold in thesubsequent transaction to secure the previous debt or debts outstanding.
(b) If debts arising from two (2) or more credit transactionsfor the sale of consumer goods or services:
(1) Are secured by cross collateral,
(2) Are consolidated into one debt payable on a singleschedule of payments, or
(3) Are charged pursuant to a revolving or open end creditplan, and the debts are secured by security interests taken with respect to oneor more of the transactions, payments received by the creditor after the takingof the cross collateral or the consolidation are deemed, for the purpose ofdetermining the amount of the debt secured by the various security interests,to have been applied to the payment of the transaction first made. To theextent debts are paid according to this subsection, security interests in itemsof property terminate as the debts originally incurred with respect to eachitem is paid.
(c) If the debts consolidated arose from two (2) or moretransactions made on the same day, or if two (2) or more items are purchased aspart of a single transaction, payments received by the creditor are deemed, forthe purpose of determining the amount of the debt secured by the varioussecurity interests, to have been applied first to the payment of the smallestdebt or the least expensive item.
(d) A security interest taken in violation of this section isunenforceable and any creditor who attempts to take such a security interestmay not retain or recover any finance, delinquency, collection, repossession,refinancing, or consolidation charges based upon the contract.
