402 (1990); Joel Rebecca Donelson, Comment, The Bond for Title: A Modern Look at Alabama's Land
Installment Contract, 46 ALA.
Deceleration is the post-acceleration process of returning the contractual lending arrangement between lender and borrower to status quo ante--an
installment contract under which the statute of limitations for the entire loan debt has not been triggered.
The bill authorizes financial institutions, insured depository institutions, or other authorized business entities to offer debt cancellation products (e.g., loan, lease, or retail
installment contract terms, or modifications to loan, lease, or retail
installment contracts, under which a creditor agrees to cancel or suspend all or part of a customer's obligation to make payments upon the occurrence of specified events) but the purchase of such debt cancellation products may not be used as a condition for making a loan.
Thomas's case arose after he purchased a vehicle on an
installment contract from General Motors Acceptance Corp.
usually in the form of a retail
installment contract. This is sometimes considered "indirect" financing because it is the con tractor who is listed as the creditor on the retail
installment contract and not the finance company.
Otherwise, "they should have signed a purchase agreement or
installment contract which would list prices for the [options in question]," says Clarence Ditlow, executive director of the Center for Auto Safety (www.autosafety.org) in Washington, D.C.
Consumer behavior suggests that, in addition to service and a put option, the initial payments provide an embedded option to convert the rental agreement to an
installment contract at the end of an initial period at a competitive interest rate.
(7) The IRS made no adjustments to ACC's
installment contract expenditures for 1994.
The question here is: How much cash would a lender pay for this
installment contract in order for it to provide the lender a rate of return of 13 percent per year (1.08 percent per month) ?
Each original purchaser, prior to the
installment contract, signed an application statement under oath that stated "This application is not made for the purpose of obtaining title to mineral, including sand and gravel but with the sole object of obtaining title to the surface of the land." However, in their subsequent purchase contracts, the plaintiffs testified that there was no specific reservation of sand and gravel along with other minerals reserved to the state.
This would increase the denominator of the formula used to calculate reportable income, thus decreasing the percentage of gain taxed on each principal payment that a seller receives from a buyer.(5) It should be emphasized that neither of these advantages changes the total amount of the gain that will be reported as income over the term of the
installment contract; however, both provide for a greater amount of tax liability to be deferred to future tax years.(6)
Also, pay attention to the terms of the
installment contract. There may very well be a provision addressing the issues of attorneys fees and court costs.
