537.3310  Limitations on executory transactions.

1.  In a consumer credit transaction, other than a consumer rental purchase agreement, if performance by a creditor is by delivery of goods, services, or both, in four or more installments, either on demand of the consumer or by prearranged scheduled performance, the consumer may cancel the obligation with respect to that part which has not been performed on the date of cancellation.

2.  If the consumer exercises the right to cancel or, in any event, if the creditor attempts to exercise a right to accelerate, the creditor is entitled to recover only that part of the cash price and charges attributable to the part of the creditor's obligation which has been performed.

3.  Cancellation under this section shall be effective when the consumer mails or delivers a written notice of cancellation.

4.  Notwithstanding an agreement to the contrary, a creditor may not exercise a right to accelerate beyond the amount set forth in subsection 2.

5.  Subsections 1 through 4 do not apply to a membership camping contract which is subject to the requirements of chapter 557B.

Section History: Early form

  [C75, 77, 79, 81, § 537.3310]

Section History: Recent form

  87 Acts, ch 80, §44; 87 Acts, ch 181, §4

Internal References

  Referred to in § 537.5201, 557B.14

Previous Section 537.3309

Next Section 537.3311

Return To Home index

© 1999 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 18 15:00:31 CST 1999
URL: /DOCS/IACODE/1999/537/3310.html