[§480J-3]  Written agreement; requirements; disclosure.  (a)  Each installment loan transaction and renewal shall be documented by a written agreement signed by the installment lender and consumer.  The written agreement shall contain the following information:

     (1)  The name and address of the consumer and the lender;

     (2)  The transaction date;

     (3)  The loan amount;

     (4)  The authorized interest rate;

     (5)  A statement of the total amount of finance charges charged, expressed as a dollar amount and an annual percentage rate;

     (6)  The installment payment schedule setting out the amount due on specific due dates;

     (7)  A statement that an installment lender shall not require a consumer to purchase add-on products;

     (8)  The name, address, electronic mail address, and telephone number of any agent or arranger involved in the installment loan transaction;

     (9)  A notice to the consumer that the consumer has the right to rescind the installment loan before 5:00 p.m., Hawaii-Aleutian Standard Time, by the third business day after the date the loan was originated and at the location where the loan was originated;

    (10)  A statement that it shall not be considered a violation of law if the consumer obtains an installment loan voluntarily and separately from the consumer's spouse if the consumer documents the action in writing, either in the written agreement or in a subsequent agreement;

    (11)  A notice to the consumer that a returned instrument may result in a dishonored instrument charge, not to exceed $25; and

    (12)  A description of the methods by which installment loan payments may be made, which may include a debit card payment, Automated Clearing House transfer, electronic check, other forms of electronic transfers, money order, cash, check, or any additional method of loan payment authorized by this chapter or by rule adopted by the commissioner pursuant to chapter 91.

     (b)  The written agreement shall also comply with the disclosure requirements of the Truth in Lending Act and any regulation adopted thereunder.

     (c)  The installment lender shall provide to the consumer a printed written disclosure prior to signing the written agreement that accurately discloses the types of information in the chart below, in at least twelve-point type:

"MULTIPLE

INSTALLMENT

LOAN PAYMENT

     Amount Financed

     Term (months)

     Authorized Interest Rate

     Monthly Maintenance Fee

     Total of All Permitted Charges

     Total You Will Pay for This Loan If Paid on Time

     (Amount Financed, Interest, and Monthly Maintenance Fee)

     ANNUAL PERCENTAGE RATE

     Payment Schedule"

Included in the chart above, an installment lender may include any other information the lender believes will benefit the consumer, such as an explanation of annual percentage rate and how it is calculated.

     (d)  The consumer shall sign and date each of two copies of the written disclosure required pursuant to subsection (c), one of which shall be given to the consumer and the other of which shall be retained by the lender as part of its records of the installment loan.  This requirement may also be accomplished by electronically signing an electronic copy of the disclosure and making the disclosure electronically available to the consumer if the consumer is applying for the loan over the Internet.  For purposes of preparing the written disclosure, the installment loan shall be structured on a precomputed basis (total of payments) with the assumption that all payments will be made as scheduled.

     (e)  The written agreement may include a demand feature that permits the lender or any other person, if the consumer fails to make any payment when due, to terminate the installment loan in advance of the original maturity date, but no earlier than ten days after the missed payment, and demand repayment of the entire outstanding balance.  If the written agreement includes a demand feature and the demand feature is exercised, the lender shall be entitled to collect only the outstanding balance and a prorated portion of the unpaid interest and fees earned up to the date of termination.  For purposes of this subsection, the outstanding balance and prorated portion of the unpaid interest and fees shall be calculated as if the consumer had voluntarily prepaid the loan in full on the date of termination. [L 2021, c 56, pt of §2]