(a) No buyer shall be in default under a layaway agreement until a required payment remains unpaid for at least thirty (30) days after the scheduled payment date.
(b) If the seller’s layaway agreement includes a liquidated damages clause as permitted in paragraph (e) of this section, the buyer shall not be in default until at least ten (10) days after the seller mails a notice of the default to the last known address of the buyer. The notice shall be mailed using certified mail, return receipt requested, or by regular mail evidenced by a properly completed and stamped certificate of mailing by regular mail. Such notice shall state:
(1) The fact that the buyer has failed to comply with the layaway arrangements;
(2) In what manner the buyer has failed to comply with the layaway arrangement;
(3) The date upon which the buyer will be in default should payment not be forthcoming;
(4) The amount of money which must be paid by the buyer to avoid default; and
(5) The exact consequences of the buyer’s default.
(c) If the seller’s layaway agreement does not include a liquidated damages clause, or if the layaway price of the specific goods subject to the layaway arrangement is one hundred dollars ($100.00) or less, no written notice need be sent to the buyer as a prerequisite to the buyer’s default.
(d) Upon the buyer’s default, the seller may cancel the layaway agreement and the balance of the monies paid shall be refunded by the seller to the buyer. Where the layaway agreement contains a liquidated damages provision, cancellation shall be in accordance with paragraph (b) of this section, and the seller may recover liquidated damages as permitted in paragraph (e) of this section.
(e) If the buyer defaults under a layaway agreement, and the agreement contains a liquidated damages provision, the seller may retain as liquidated damages an amount not to exceed the lesser of twenty- five dollars ($25.00) or ten per cent (10%) of the cash price of the goods subject to the layaway agreement. Any balance due to the buyer shall be refunded by the seller in cash or by due bill at the option of the buyer.
(f) The buyer may, at any time before delivery or tender of delivery, and before default, cancel the layaway agreement. In such event, the seller may retain from the refund due the buyer liquidated damages in an amount not to exceed the layaway charge plus the lesser of either twenty-five dollars ($25.00) or ten per cent (10%) of the cash value of the goods subject to the layaway agreement. The balance shall be refunded by the seller to the buyer in cash or by due bill at the option of the buyer.
(g) Unless otherwise provided in the layaway agreement, paragraphs (d), (e) and (f) of this section do not apply to a special order transaction.
(Ord. No. 1345-01. Passed 12-10-01, eff. 12-19-01 without the signature of the Mayor)