§ 6-51-3. Default, notice, right to cure, reinstatement.
(a) The default provisions of a consumer automobile lease or automobile loan agreement
are enforceable only to the extent that:
(1) The consumer does not make one or more payments required by the lease or loan agreement;
or
(2) The lessor or secured party establishes that the prospect of payment, performance,
or realization of the lessor's or secured party's interest in the automobile is significantly
impaired.
(b) After a default under an automobile lease or loan agreement by the consumer, the lessor
or secured party may not accelerate, take judicial action to collect, or repossess
the automobile until the lessor or secured party gives the consumer the notice required
by this section and the consumer does not cure the default in the time allowed under
this section. A lessor or secured party may initiate a procedure to cure by sending
to the consumer, at any time after the consumer has been in default for ten (10) days,
a notice of the right to cure the default. Said notice shall be delivered via certified
mail, return receipt requested, or via first-class mail, at the consumer's address
last known to the lessor or secured party. The time when notice is given shall be
deemed to be upon actual delivery of the notice to the consumer or three (3) business
days following the mailing of the notice to the consumer at the consumer's address
last known to the lessor or secured party.
(c) The notice shall be in writing and shall conspicuously state the rights of the consumer
upon default in substantially the following form:
The heading shall read: "Rights of Defaulting consumer under Rhode Island General
Laws.� The body of the notice shall read: "You may cure your default in (describe
automobile lease or loan agreement in a manner enabling the consumer to identify it)
by paying to (name and address of lessor or secured party) (amount due) before (date
that is at least twenty-one (21) days after notice is delivered). If you pay this
amount within the time allowed you are no longer in default and may continue with
the automobile (lease or loan) agreement as though no default has occurred.
If you do not cure your default by the date stated above, the lessor or secured party
may sue you to obtain a judgment for the amount of the debt and may take possession
of the automobile.
If the lessor or secured party takes possession of the automobile, you may get it
back by paying the full amount of your debt plus any reasonable expenses incurred
by the lessor or secured party if you make the required payment within twenty (20)
days after the lessor or secured party takes possession.
If (the secured party) sells the vehicle repossessed from the consumer for an amount
exceeding the amount outstanding on the automobile (loan) agreement including reasonable
expenses related to judicial action and or repossession, the excess funds shall be
returned promptly to the defaulting consumer.
You have the right to cure a default only once in any twelve-month (12) period during
the period of the automobile (lease or loan) agreement. If you default again within
the next twelve (12) months in making your payments, we may exercise our rights without
sending you another right to cure notice. If you have questions, telephone (name of
lessor or secured party) at (phone number).�
(d) Within the period for cure stated in the notice under this section, the consumer may
cure the default by tendering the amount of all unpaid sums due at the time of tender,
including any unpaid delinquency or default charges, but without additional security
deposit or prepayment of period payments not yet due. Cure restores the rights of
the lessor or secured party and consumer under the automobile loan or lease agreement
as if the default had not occurred.
(e) A consumer has the right to cure only once in any twelve-month (12) period during
the period of the automobile lease or loan agreement.