§ 24-4.5-2-408 — Cross-collateral

Cross-Collateral — (1) In addition to
contracting for a security interest pursuant to the provisions on security
in sales or leases (24-4.5-2-407), 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 credit service 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 (subsection (1) of
24-4.5-2-206). 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.
Formerly: Acts 1971, P.L.366, SEC.3.