408.554. Notice of default, contents, form, delivery.
Notice of default, contents, form, delivery.
408.554. 1. After a borrower has been in default for tendays for failure to make a required payment and has notvoluntarily surrendered possession of the collateral, a lendermay give the borrower and all cosigners on the credit transactionthe notice described in this section. A lender gives notice tothe borrower and cosigners under this section when he deliversthe notice to the borrower or cosigner or mails the notice to himat his last known address.
2. Except as provided in subsection 4 of this section, thenotice shall be in writing and conspicuously state: The name,address and telephone number of the lender to whom payment is tobe made, a brief identification of the credit transaction, theborrower's right to cure the default, and the amount of paymentand date by which payment must be made to cure the default. Anotice in substantially the following form complies with thissubsection:
(name, address, and telephone number of lender)
(account number, if any)
(brief identification of credit transaction)
(amount) is the AMOUNT NOW DUE
(date) is the LAST DAY FOR PAYMENT
You are late in making your payment(s). If you pay theAMOUNT NOW DUE (above) by the LAST DAY FOR PAYMENT (above), youmay continue with the contract as though you were not late. Ifyou do not pay by that date, we may exercise our rights under thelaw.
3. If the loan transaction is an insurance premium loan,the notice shall conform to the requirements of subsection 2 ofthis section and a notice in substantially the form specified inthat subsection complies with this subsection, except for thefollowing:
(1) In lieu of a brief identification of the loantransaction, the notice shall identify the transaction as aninsurance premium loan and each insurance policy or contract thatmay be canceled;
(2) In lieu of the statement in the form of noticespecified in subsection 2 of this section that the lender mayexercise his rights under the law, the statement that each policyor contract identified in the notice may be canceled; and
(3) The last paragraph of the form of notice specified insubsection 2 of this section shall be omitted.
4. If a credit transaction is secured, the notice describedin this section shall further state the following: "If youvoluntarily surrender possession of the following specifiedcollateral, you could still owe additional money after the moneyreceived from the sale of the collateral is deducted from thetotal amount you owe."
5. In the case of a second default on the same loan madepursuant to section 408.100 or on the same retail timetransaction as defined in section 408.250 or in the case of athird default on the same second mortgage loan as defined insection 408.231, the notice described in subsection 2 of thissection shall indicate that in the case of further default, theborrower will have no right to cure.
(L. 1979 S.B. 305, A.L. 1992 S.B. 705)