Delaware Administrative Code
Title 5 - Banking
2900 - Financing the Sale of Motor Vehicles
2901 - Motor Vehicle Sales Finance Companies Operating Regulations
Section 2901-5.0 - Negative Equity Financing
Universal Citation: 5 DE Admin Code 2901-5.0
Current through Register Vol. 28, No. 3, September 1, 2024
Inclusion of negative equity financing is permissible only if the amount of an existing lien in a credit sales transaction exceeds the value of a trade-in. In a negative equity trade-in transaction where no cash payment is involved, licensees must disclose a zero down-payment. The negative equity must not be disclosed as a negative number for the consumer's down-payment. Any negative equity to be financed under the retail installment sales contract must be disclosed under 5 Del.C. § 2907 (e)(4), and not 5 Del.C. § 2907 (e)(2).
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