427.115. Definitions.

MISSOURI STATUTES AND CODES

Definitions.

427.115. In sections 427.110 to 427.190, unless the context otherwiserequires, the following words and phrases shall mean:

(1) "Collateral", any or all property pledged to secure payment,repayment, or performance under a credit agreement, including, but notlimited to, personal property, real property, fixtures, inventory,receivables, rights or privileges;

(2) "Collateral protection coverage":

(a) Insurance coverage that is:

a. Purchased unilaterally by a creditor subsequent to the date of acredit agreement;

b. Purchased to provide monetary protection against loss of or damageto the collateral or against liability arising out of the ownership or useof the collateral;

c. Purchased according to the terms of a credit agreement as a resultof a debtor's failure to provide evidence of insurance or failure tomaintain adequate insurance to cover the collateral, with the costs of suchinsurance, including interest and any other charges imposed by the creditorin connection with the placement of such insurance, payable by the debtor;and

d. Purchased to protect only the interest of the creditor orinsurance coverage that is purchased to protect both the interest of thecreditor and some or all of the interest of the debtor. The term of suchcoverage may, but need not, extend to the full term of the credittransaction;

(b) Does not include insurance coverage that is:

a. Purchased by the creditor and not chargeable to the debtor;

b. Purchased at the inception of a credit transaction to which thedebtor is a party or agrees to the insurance coverage, whether or not thecosts are included in any payment plan under the credit transaction;

c. Purchased by the creditor following foreclosure, repossession, ora similar event wherein the creditor gains possession or control over thecollateral;

d. Maintained by the creditor for the protection of any or allcollateral which may come into the possession or control of the creditorthrough foreclosure, repossession, or a similar event;

e. Credit insurance, mortgage protection insurance, insurance issuedto cover the life or health of the debtor, or any other insurancemaintained to cover the inability or failure of the debtor to make paymentunder the credit agreement, including any insurance governed by chapter385, RSMo;

f. Title insurance;

g. Flood insurance required to be placed by creditors by 42 U.S.C.4012(a), as amended, pursuant to the National Flood Insurance Reform Act of1994; or

h. Conditioned upon the default or delinquency of the debtor's loanpayments, or the repossession of the collateral;

(3) "Credit agreement", the written document or documents that setforth the terms of the credit transaction;

(4) "Credit transaction", any transaction which requires the paymentor repayment of money, goods, services, property, rights, or privileges,which is to be made on one or more future dates, where such obligation issecured by collateral;

(5) "Creditor", any person, corporation, partnership, association, orother venture, which is in the business of lending money or the vendor orlessor of goods, services, property, rights, or privileges, for whichrepayment is arranged through a credit transaction, and includes anysuccessor to the rights, title, interest, or liens of such lender, vendor,or lessor;

(6) "Debtor", a borrower of money or a purchaser or lessee of goods,services, property, rights, or privileges, for which payment or repaymentis arranged through a credit agreement. Debtor does not include any personwho is not the primary obligor under a credit transaction or who is notjointly liable or jointly and severally liable with the debtor for theobligation.