Credit Sale Contracts

"“Credit sale contract” means any agreement, including a conditional sale contract, a retail installment contract, or any other form of instrument evidencing an obligation to pay the price of goods, services, or both, purchased in a credit sale, either by payment thereof over a period of time subject to a finance charge; or pursuant to a written agreement, subject to payment in more than four installments not including a down payment, whether or not the contract contains a title retention provision. “Credit sale contract” includes any contract for the bailment or leasing of goods (unless terminable without penalty at any time by the bailee or lessee) by which the bailee or lessee contracts to pay as compensation a sum substantially equivalent to or in excess of the value of the goods and services involved and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming, for no additional consideration or for nominal consideration, the owner of the goods upon full compliance with the terms of the contract. (HRS § 476-1)

Every credit sale contract shall be in writing; contain, incorporate by reference, or otherwise clearly refer to all the agreement of the parties; provided that if a portion of the agreements are to be filed or recorded with any governmental agency, it may be contained in a separate part; and be signed by the parties; provided that if a portion of the agreements is contained in a separate part, the separate part shall be separately signed. (HRS § 476-3) Every credit sale contract which complies with the disclosure requirements of the federal Truth in Lending Act as of the date upon which the contract is executed shall be deemed to comply with the disclosure provisions. (HRS § 476-4)"