§ 5-3-202 — Cross-collateral

(1) In addition to contracting for a security
interest pursuant to the provisions on security in sales or leases contained in
section 5-3-201, a seller in a consumer credit sale may secure the debt arising from
the sale by contracting for a security interest in other property if as a result of a
prior sale the seller has an existing security interest in the other property. The
seller may also contract for a security interest in the property sold in the
subsequent sale as security for the previous debt.

(2) If the seller contracts for a security interest in other property pursuant to
this section, the rate of finance charge thereafter on the aggregate unpaid
balances so secured may not exceed that permitted if the balances so secured
were consolidated pursuant to the provisions on consolidation involving a
refinancing contained in section 5-2-205 (1). The seller has a reasonable time after
so contracting to make any adjustments required by this section. Seller in this
section does not include an assignee not related to the original seller.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1218, � 1, effective July 1.