This section defines terms used in the article, including administrator, borrower, creditor, free-look period, guaranteed asset protection waiver, insurer, vehicle, and vehicle finance agreement.
The following definitions apply in this Article: (1)Administrator. — A person that performs administrative or operational functions with respect to guaranteed asset protection waivers. (2)Borrower. — A debtor, retail buyer, or lessee under a vehicle finance agreement. (3)Creditor. — Any of the following: a.A lender in a loan or credit transaction. b.A lessor in a lease transaction. c.A vehicle dealer, including a motor vehicle dealer as that term is defined in G.S. 20-286(11), that provides credit to or arranges financing for a purchaser of a vehicle. d.A seller in a commercial retail installment transaction. e.An assignee of any of the foregoing to whom the credit obligation is payable. (4)Free-look period. — The period of time from the effective date of a guaranteed asset protection waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. (5)Guaranteed asset protection waiver. — Either of the following: a.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 vehicle finance agreement in the event of a total physical damage loss or unrecovered theft of the vehicle, which agreement shall be part of, or a separate addendum to, the vehicle finance agreement. The agreement 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 vehicle. b.A 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 borrower’s lease agreement as a result of excessive wear and use of a vehicle. The agreement must be part of, or a separate addendum to, the lease agreement. Excess wear and use waivers may also cancel or waive amounts due for excess mileage. The term does not include a vehicle value protection agreement as defined in G.S. 66-471(10). (6)Insurer. — An insurance company licensed, registered, or otherwise authorized to do business under Chapter 58 of the General Statutes. (7)Vehicle. — A motor vehicle, as that term is defined in G.S. 20-286(10), as well as 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 trailers for motorcycles, boats, campers, and personal watercraft. (8)Vehicle finance agreement. — A loan, lease, or retail installment sales contract for the purchase or lease of a vehicle. History: History.2013-193, s. 1; 2021-172, s. 1.