AB 1143

Bill Subjects

Abstract

Federal law provides various protections regarding credit extended to members of the armed forces called to active duty, including, among others, limitations on the interest charged and mandatory disclosures. Existing law makes a security interest in personal property, other than specified modes of transportation, void if it would cause a loan procured by a covered member in the course of purchasing the personal property to be exempt from the federal protections. Existing law also makes a security interest in a motor vehicle void if it would cause a loan procured by a covered member to be exempt from the federal protections and that loan also funds the purchase of a credit insurance product or credit-related ancillary product. This bill would instead require a loan to a covered member, as defined, for the purchase of personal property, other than specified modes of transportation, to comply with federal law. The bill would also require a loan to a covered member for the purchase of a motor vehicle to comply with federal law if the loan finances the purchase of a guaranteed asset protection waiver.