Ala. Code § 8-37-2

Current through the 2024 Regular Session.

Section 8-37-2 - Definitions

For the purposes of this chapter, the following words have the following meanings:

(1) ADMINISTRATOR. A person, other than an insurer or creditor, that performs administrative or operational functions pursuant to guaranteed asset protection waiver programs.

(2) BORROWER. A debtor, retail buyer, or lessee, under a finance agreement.

(3) CREDITOR means any of the following:

a. The lender in a loan or credit transaction.

b. The lessor in a lease transaction.

c. Any retail seller of motor vehicles in a retail installment transaction.

d. The seller in commercial retail installment transactions.

e. The assignees of any of the foregoing to whom the credit or lease obligation is payable.

(4) FINANCE AGREEMENT. A loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.

(5) FREE LOOK PERIOD. The period of time from the effective date of the GAP waiver until the date the borrower may cancel the GAP waiver without penalty, fees, or costs to the borrower. This period of time shall not be shorter than 30 days.

(6) GUARANTEED ASSET PROTECTION WAIVER or GAP WAIVER. A contractual agreement in which a creditor agrees , with or without a separate charge, to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement shall be part of, or a separate addendum to, the finance agreement. A GAP waiver may also provide, with or without a separate charge, a benefit that waives an amount or provides a borrower with a credit towards the purchase of a replacement motor vehicle. The term also includes an excess wear and use waiver contractual agreement in which a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts that may become due under a motor vehicle lease agreement of a borrower as a result of excessive wear and use of a leased motor vehicle, including excess mileage, which agreement shall be part of, or a separate addendum to, the lease agreement.

(7) INSURER. An insurance company licensed, registered, or otherwise authorized to do business under the insurance laws of this state.

(8) MOTOR VEHICLE. Self-propelled or towed vehicles designed for personal or commercial use, including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, all terrain vehicles, snowmobiles, campers, boats, personal watercraft, and motorcycle, and boat, camper, and personal watercraft trailers.

(9) PERSON. An individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.

Ala. Code § 8-37-2 (1975)

Amended by Act 2022-179,§ 1, eff. 1/1/2023.

Added by Act 2017-392,§ 1, eff. 1/1/2018.