Sec. 12. (1) (a) An installment sale contract shall must be in writing, and shall contain all of the agreements between the buyer and the seller relating to the installment sale of the motor vehicle sold, and shall be signed by both the buyer and the seller.

(2) (b) An installment sale contract shall must be completed as to all essential provisions prior to before the signing of the contract by the buyer and contain such other information as the administrator may require.

(3) (c) An exact copy of the installment sale contract shall must be furnished by the seller to the buyer without charge at the time the buyer signs the contract. The buyer's copy of the contract shall must contain the signature of the seller identical with the signature on the original contract.

(4) (d) An installment sale contract shall must contain the following notice printed prominently and in the form indicated in 12-point type or larger directly above the space provided in the contract form for the signature of the buyer:

"Notice to buyer. Do not sign this contract in blank. You are entitled to 1 true copy of the contract you sign without charge. Keep it to protect your legal rights.".

(5) (e) The seller shall obtain from the buyer a written acknowledgment of the delivery of the copy of the contract. The acknowledgment shall must be printed in 12-point type or larger and, if attached to the contract, it shall must be printed below the buyer's signature to the contract and independently signed.

(6) (f) An installment sale contract shall must provide for weekly, semi-monthly, or monthly payments of the time balance in substantially equal periods. and amounts. This subdivision subsection does not apply do any of the following:

(a) Apply to an installment sale contracts contract made between an installment seller and an installment buyer who is an employee of the installment seller. This subdivision shall not be construed to prohibit

(b) Prohibit an installment sale contract that requires payments in unequal amounts.

(c) Prohibit an installment sales contracts sale contract that extend extends the time for making installment payments for a period of not to exceed 3 months. This subdivision does not preclude

(d) Preclude the exceptional installment sale contract provided for in section 22. of this act.

Sec. 13. (1) An installment sale contract shall must include the full names and addresses of all the parties to the contract, the date when signed by the buyer, and a description of the motor vehicle sold that is sufficient for accurate identification.

(2) An installment sale contract shall must set forth all of the following separate items in the following order:

(a) The cash price of the motor vehicle. This amount shall must include any taxes, the cash price of agreed upon on accessories and installation of the accessories, the cash price of any extended warranty or service contract, and a documentary preparation fee. The documentary preparation fee shall must not exceed 5% of the cash price of the motor vehicle or $160.00, whichever is less. Beginning on January 1, 2005, the administrator shall adjust the maximum amount then in effect for the documentary preparation fee described in this subdivision every 2 years to reflect the cumulative percentage change in the consumer price index Consumer Price Index for the 2 immediately preceding calendar years, as determined by the administrator. The administrator shall round the adjustment to the nearest $10.00 increment to set the fee every 2 years under this subdivision, but shall carry over and use the absolute value to calculate the next 2-year adjustment. As used

in this subdivision, "consumer price index" "Consumer Price Index" means the United States consumer price index for all urban consumers, U.S. city average, as defined and reported by the United States department of labor, bureau of labor statistics.Bureau of Labor Statistics of the United States Department of Labor.

(b) The down payment made by the buyer at the time of or before execution of the contract, indicating whether made in cash, represented by the agreed value of a trade-in motor vehicle or other goods, or both. The amount of cash and the value of any trade-in shall must be stated separately. A description that is sufficient for identification of any trade-in shall must be included.

(c) The unpaid cash price balance, which is the difference between the cash price under subdivision (a) and the down payment under subdivision (b).

(d) The cost of any insurance premium or travel emergency benefits pertaining to the operation of the automobile that the seller agrees to extend credit to the buyer to obtain. The installment sale contract shall must set forth the term of the insurance and a concise description of the terms of the insurance policy and the travel emergency benefits. If the precise cost of the insurance is not available at the time the contract is signed, an estimated amount, ascertained from the current published applicable manual of a recognized standard insurance rating bureau, may be set forth in the contract. Within Not later than 25 days after making the installment sale contract, the seller shall mail or cause to be mailed to the buyer at his or her the buyer's address as shown on the contract a certificate or policy of insurance and a statement showing the exact cost of the insurance.

Each installment sale contract shall must contain the following warning, printed prominently in red ink and in 12-point type or larger, directly preceding the notice provided for in section 12(d), 12(4), enclosed by a continuous heavy line:

________________________________________________________

Warning: The insurance afforded hereunder does not cover

liability for injury to persons or damage to property of

others unless so indicated hereon.

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(e) The cost of any guaranteed asset protection waiver that the seller agrees to extend credit to the buyer to obtain. For purposes of this subdivision, all of the following apply:

(i) "Guaranteed asset protection waiver" means that term as defined in section 3 of the guaranteed asset protection waiver act, 2009 PA 229, MCL 492.23.

(ii) A guaranteed asset protection waiver may be included as part of, or as an addendum to, an installment sale contract.

(iii) An installment seller that offers, sells, or provides guaranteed asset protection waivers to installment buyers in this state must comply with the guaranteed asset protection waiver act, 2009 PA 229, MCL 492.21 to 492.33.

(iv) Any cost to an installment buyer for a guaranteed asset protection waiver entered into in compliance with the truth in lending act, 15 USC 1601 to 1667f, and the regulations promulgated under that act, 12 CFR part 226, must be separately stated and is not considered a finance charge or interest.

(f) Other necessary or incidental costs that the seller contracts to pay on behalf of the buyer and for the amount of which the seller agrees to extend credit to the buyer as authorized under

this act. The contract shall must contain an itemization of the nature and amount of the costs.

(g) The principal amount financed, which is the total of the amounts described in subdivisions (c), (d), (e), and (f).

(h) The finance charge, which is the consideration in excess of the total of the cash price under subdivision (a), excluding the amounts described in subdivisions (d), (e), and (f).

(i) The time balance, which is the total of the amounts described in subdivisions (g) and (h) and represents the total obligation of the buyer that he or she the buyer agrees to pay in 2 or more scheduled payments.

(j) The payment schedule, which shall must include the number of payments, the amount of the payments, and the time of the payments required to liquidate the time balance.

(3) An installment sale contract shall must state clearly any collateral security given to secure the buyer's obligation under the contract.

(4) An installment sale contract shall must contain a summary notice of the buyer's principal legal rights respecting prepayment of the contract and rebate of the finance charge and reinstatement of the contract in the event of repossession.

(5) An installment sale contract shall must contain specific provisions concerning the buyer's liability for default charges, repossession, and sale of the motor vehicle in case of default or other breach of contract, and the seller's or holder's rights concerning any collateral security.

Sec. 22. (1) An installment sale contract may provide for a series of weekly, semi-monthly or monthly payments in substantially equal periods, and amounts, followed by a single larger payment of

that satisfies the unpaid time balance , in which event on the installment sale contract.

(2) If the larger payment described in subsection (1) is more than twice as large as the average of the series of earlier scheduled payments under the installment sale contract, the installment buyer shall have has the right to an option, at the time such the larger payment shall become becomes due, to make such the larger payment or to enter into a second contract , which contract shall conform that conforms to all the provisions of this act except that the refinance charge provided for in such the second contract shall must not exceed the finance charge rate provided for in the first contract.