State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-06b > 31a-6b-303

31A-6b-303. Cancellation or termination of a guaranteed asset protection waiver.
(1) (a) A borrower may cancel a guaranteed asset protection waiver in accordance withthis section.
(b) A borrower may not waive by contract the borrower's right to cancel a guaranteedasset protection waiver in accordance with this section.
(c) A guaranteed asset protection waiver terminates on the day on which the relatedfinance agreement terminates.
(2) (a) A guaranteed asset protection waiver shall provide for a preliminary period of atleast 30 days.
(b) If a borrower cancels a guaranteed asset protection waiver or if a guaranteed assetprotection waiver terminates within the preliminary period, the borrower is entitled to a refund ofthe charge for the guaranteed asset protection waiver as follows:
(i) if benefits have not been provided, a full refund; or
(ii) if benefits have been provided, a refund to the extent provided for in the guaranteedasset protection waiver.
(3) (a) If a guaranteed asset protection waiver is cancelled by the borrower or terminatesafter the preliminary period, to obtain a refund of any portion of the charge for the guaranteedasset protection waiver, the borrower shall request the refund:
(i) in a writing provided to:
(A) the creditor;
(B) an administrator; or
(C) another person designated in the guaranteed asset protection waiver;
(ii) within 90 days of the day on which an event occurs that terminates the financeagreement if the refund is sought on the basis of termination of a finance agreement; and
(iii) in accordance with any additional terms in the guaranteed asset protection waiver.
(b) If a guaranteed asset protection waiver is cancelled by the borrower or terminatesafter the preliminary period, but before the term of the finance agreement ends, a borrower isentitled to a refund:
(i) of the portion of the charge for the guaranteed asset protection waiver that under theterms of the guaranteed asset protection waiver is considered unearned; and
(ii) subject to any other terms of the guaranteed asset protection waiver.
(4) (a) If the cancellation of a guaranteed asset protection waiver occurs as a result of anyof the following, a refund may be paid directly to the creditor or administrator and applied asprovided in Subsection (4)(b):
(i) a default under the finance agreement;
(ii) the repossession of the vehicle associated with the finance agreement; or
(iii) any other type of termination of the finance agreement or guaranteed asset protectionwaiver.
(b) A creditor may apply a refund described in this Subsection (4) to reduce the amountowed under a finance agreement, unless the borrower can show that the finance agreement is paidin full.

Enacted by Chapter 274, 2010 General Session