Section 614 - Contents of contract and disclosure requirementsA. Every installment sale contract shall state the full names and addresses of all the parties thereto, the date when signed by the buyer and shall contain a description of the motor vehicle sold which shall be sufficient for accurate identification.B. Every installment sale contract shall set forth clearly and conspicuously in writing the following separate items as such and other information as applicable:1. Cash price of the motor vehicle. This amount may include any taxes, charges for delivery, charges for servicing, repairing or improving the motor vehicle, charges for service contracts and warranties which alternatively shall be disclosed pursuant to clause 5, charges for accessories and installation or other charges normally included in the delivered cash price of such motor vehicle. The cash price of the motor vehicle otherwise may not include charges required to be disclosed pursuant to clause 5. If the cash price contains charges for service contracts or warranties, then, adjacent to the "cash price" listed on the contract in type print size not smaller than the type size used for all item categories, shall be included the boldface and underlined words or substantially similar words "including optional service contracts and/or warranties in the amount of"; and then the separately itemized charges for the service contract and warranty shall be specifically stated in the contract and warranty items.2. Down payment made by the buyer at the time of or prior to execution of the contract, indicating whether made in cash, or represented by the agreed value of a "trade-in" motor vehicle, or other goods, or both. The amount of cash and/or the value of any "trade-in" shall be shown separately. A description of the "trade-in," if any, sufficient for identification shall be shown.3. Unpaid cash balance which shall be the difference between the cash price (Item 1) and the down payment (Item 2) above.4. Charges for insurance the payment of which the seller agrees to extend credit to the buyer. The term of such insurance, a concise description of the coverage and the amount of the premium shall be set forth. If the precise charges for insurance are not available at the time the contract is signed, an estimated amount, ascertained from a chart prepared by the licensee and approved by the department, may be set forth in the contract. When the charges for insurance are so estimated, the contract shall so state and it shall contain notice to the buyer that the difference between the estimated charges and the actual charges for the insurance, including finance charges on such amount, will be adjusted at the time of the final payment on the contract, and a statement of the amount of the adjustment shall be furnished to the buyer simultaneously with the delivery of the insurance policy or certificate.5. Other charges, necessary or incidental to the sale or financing of a motor vehicle, which the seller contracts to retain, receive or pay on behalf of the buyer and any other charges necessary or incidental to the sale or financing of the motor vehicle under the contract for which the seller agrees to extend credit to the buyer as authorized by this act, including charges for debt cancellation agreements and debt suspension agreements.6. Principal amount financed which shall be the total of the unpaid cash price balance (Item 3) plus charges for insurance (Item 4) plus other charges (Item 5) for which the seller agrees to extend credit to the buyer.7. Finance charge which is the consideration in excess of the cash price (Item 1), excluding charges for insurance (Item 4), and other charges (Item 5), which the buyer agrees to pay to the seller for the privilege of purchasing the motor vehicle under the installment sale contract.8. Time balance which shall be the total of the principal amount financed (Item 6), plus the finance charge (Item 7), and which shall represent the total obligation of the buyer which he agrees to pay in two or more scheduled payments.9. Payment schedule which shall state the number of payments, the amount of the payments and the time of the payments required to liquidate the time balance.10. Notwithstanding any provisions of this act or any other law to the contrary, the finance charge percentage rate included in an installment sale contract for the sale of a heavy commercial motor vehicle may vary during the term thereof pursuant to a formula or index set forth therein that is made readily available to and verifiable by the buyer and is beyond the control of the holder of the contract. For the purpose of disclosing the amount of finance charge (Item 7) and time balance (Item 8) and setting forth a payment schedule (Item 9), such amounts may be calculated using the finance charge percentage rate applicable to the transaction as of the date of execution of the contract, notwithstanding the fact that such finance charge percentage rate may increase or decrease over the term of the contract according to a formula or index set forth in the contract.10.1. Charges for warranties, charges for service contracts, charges for insurance for each policy of insurance required to be disclosed pursuant to clause 4, charges required to be disclosed pursuant to clause 5 and costs and charges authorized in section 18 shall be separately itemized in the contract as to nature and amounts of the cost or charge to the buyer. If the seller retains a portion of the charge of a good or service which is provided by others, the seller shall disclose that the seller may retain a portion of the charges.C. Every installment sale contract shall provide a description that reasonably identifies any collateral security in which a security interest is provided to secure the buyer's obligation pursuant to 13 Pa.C.S. § 9108 (relating to sufficiency of description), including the motor vehicle and any other collateral.D. Every installment sale contract shall contain a summary notice of the buyer's principal legal rights respecting prepayment of the contract and rebate of finance charge and reinstatement of the contract in the event of repossession.E. Every installment sale contract shall contain specific provisions as to the holder's right to accelerate the maturity of the contract upon default or other breach of contract and as to the buyer's liability respecting nonpayment, the dollar or percentage amount of any default charges which may be imposed due to a late payment, other than a deferral or extension charge, repossession and sale of the motor vehicle, in case of default or other breach of contract, and respecting the collateral security, if any.F. Every installment sale contract for the sale of a mobilehome or house trailer may contain a provision which shall require the buyer to pay any and all real estate taxes which may thereafter be levied upon said vehicle and which shall require the buyer to furnish the seller or holder with proof of payment thereof in such manner and at such times as the contract may prescribe. The contract may further provide for acceleration of payments and/or give the seller or holder the right to repossess the vehicle upon the buyer's failure to pay such taxes or furnish proof thereof as required. If the mobilehome or house trailer is sold by any tax levying unit of government for nonpayment of real estate taxes by such buyer, any lien or encumbrance contained on the title of the vehicle pursuant to "The Vehicle Code" or any encumbrance filed of record against the vehicle under the provisions of the "Uniform Commercial Code" shall not be affected or divested.G. Charges enumerated in this section and costs and charges authorized by section 18 shall be separately itemized in the contract.1947, June 28, P.L. 1110, § 14. Amended 1961, Sept. 23, P.L. 1614, §1; 1990, April 4, P.L. 110, No. 25, § 3, effective in 60 days; 2002, Dec. 9, P.L. 1446, No. 186, § 10, effective in 90 days.