§ 7-75 — Required disclosures

(a) An EISA provider shall disclose the following information to each consumer, clearly and conspicuously, in a form that the consumer can keep at the time the transaction is consummated: (1) the date of the EISA; (2) the dollar amount of the amount financed; (3) the sales price of the transaction if different from the amount financed; (4) the EISA payment calculation method, including any percentages used in the EISA payment calculation method, which shall be rounded to the nearest one-hundredth of 1% if the percentage is not a whole number; (5) the maximum number of payments expressed as a whole number; (6) the maximum duration expressed as a whole number of the period of time; (7) the income threshold expressed as a dollar amount and a statement that payments will only be required during periods when the consumer's income is equal to or exceeds the income threshold; (8) an itemization of the amount financed and, if the EISA provider is a seller of goods or services, an itemization of the amount of any down payment and any additional fees or costs; (9) the definition of "income" to be used for the purposes of calculating the consumer's obligations under the EISA; (10) a description of the terms under which the obligations of the consumer under the EISA will be extinguished before the full EISA duration; (11) a payment schedule that shows the date on which the first payment will be due and reflects each date thereafter during the EISA duration that a payment may be due; (12) an itemization of any permissible fees associated with the EISA; (13) a description of the methods used by the EISA provider to engage in a process of reconciliation and verification to determine if the consumer's payments are more than, equal to, or less than the payments owed by the consumer under the consumer's EISA; this description shall include the following: (i) a description of the frequency or triggers for the commencement of the income verification process; (ii) a description of the requirements and timing of the process in which the consumer must participate in order for the EISA provider to verify the consumer's income; and (iii) a description of any records or forms, including tax records, that the consumer may be required to execute or submit; (14) the name and address of the EISA provider; (15) a table that displays the dollar amounts of each payment, the number of payments, the effective annual percentage rate, and the total of all payments that a consumer would be required to pay under the EISA at a range of annual income levels based on the EISA duration and that includes a statement that "This comparison table is for illustrative purposes only and may not reflect the amounts that you are likely to pay under this educational income share agreement. This table assumes you have the same income over the entire term of your educational income share agreement. It does not take into account changes in income. Your income will likely change over time. This table does not represent the income or range of incomes that you are likely to earn in the future.". In computing the APR, the EISA provider shall use the amount financed and may assume that the EISA will be disbursed in the amount and with the disbursement schedule that it reasonably expects to follow for such EISA and that payments would commence on the date set forth in the EISA. The income used in this disclosure shall include, at minimum, the obligations at the following incomes: (i) no income; (ii) income equal to the annual equivalent of the income threshold; (iii) various income scenarios with at least calculations at annual incomes of $40,000, $60,000, $80,000, $100,000, $125,000, $150,000, $175,000, and $200,000; and (iv) if known by the EISA provider, the consumer's current income; (16) a statement that the EISA is not a fixed payment installment loan and that the amount the consumer will be required to pay under the EISA: (i) may be more or less than the amount financed by the EISA provider; and (ii) will vary in proportion with the consumer's income; and (17) a statement relating to the bankruptcy treatment of the EISA consistent with the requirements set forth in 12 CFR 1026.47(a)(3)(iv), as it may be amended or interpreted. (b) The disclosures required by this Section shall be grouped together and segregated from all other information. (c) The disclosures required by this Section may be provided to a consumer in electronic form, subject to compliance with the consumer's consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et seq., and applicable State law. (d) If model documents are established pursuant to any federal law covering income share agreements, compliance with those forms shall be considered compliance with this Act with respect to the disclosure requirements contained in this Act.

Legislative History

(Source: P.A. 104-383, eff. 8-15-25.)