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) ?
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.