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Can you summarize WVCO 46A-2-107?
CONSUMER CREDIT PROTECTION. > Security in sales or leases.
Short Summary
This legal document, found in the West Virginia Code under the Consumer Credit Protection Act, addresses the topic of security in sales or leases. It outlines the conditions under which a seller or issuer of a seller credit card can take a security interest in the property sold, goods upon which services are performed, land to which the goods are affixed, or property of the buyer. The debt secured must meet certain thresholds. However, a seller or issuer of a seller credit card cannot take a security interest in property of the buyer to secure the debt arising from a consumer credit sale, except in the case of cross-collateral in connection with consolidated debts or for agricultural purposes. Additionally, a lessor is prohibited from taking a security interest in property of the lessee to secure the debt arising from a consumer lease, unless it is primarily for an agricultural purpose. Any security interest taken in violation of this section is void. The document also provides a definition of ‘security interest’ and specifies the requirements for a valid security agreement.
Whom does it apply to?
Sellers or issuers of seller credit cards, buyers, lessors, and lessees
What does it govern?
Security in sales or leases
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
N/A
Jurisdiction
West Virginia