STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

SENATE BILL 1168	By:	Aldridge

AS INTRODUCED

An Act relating to credit agreements; amending 15 O.S. 2011, Section 140.1, which relates to debt cancellation agreements; requiring a debt cancellation agreement to remain a part of the loan or retail installment contract upon the transfer of the contract; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     15 O.S. 2011, Section 140.1, is amended to read as follows:
Section 140.1.  A.  A "debt cancellation agreement" means a loan term or contractual arrangement modifying loan or retail installment contract terms under which a lender or other creditor agrees to cancel all or part of an obligation of the borrower to repay an extension of credit from the lender or other creditor upon the occurrence of a specified event.  The agreement may be separate from or a part of other loan or retail installment contract documents.  The debt cancellation agreement shall remain a part of the loan or retail installment contract upon the assignment, transfer, or sale of the loan or retail installment contract.
B.  A debt cancellation agreement shall not be considered a contract of, or for, insurance if it is not a contract whereby one undertakes to indemnify another or to pay a specified amount upon determinable contingencies, but merely cancels amounts owed by a borrower under a loan, retail installment contract or other credit agreement.
SECTION 2.  This act shall become effective November 1, 2012.

53-2-2318	ARE	1/12/2012 11:31:19 AM