Guam § 2208 - Advances to perform Covenants of Buyer.

§ 2208. Advances to perform Covenants of Buyer.

(1) If the agreement with respect to a consumer credit sale or a

refinancing contains covenants by the buyer to perform certain duties

pertaining to insuring or preserving collateral and if the seller or his

transferee pursuant to the agreement pays for performance of the duties

on behalf of the buyer he may add the amounts paid to the debt. Within a

reasonable time after advancing any sums, he shall state to the buyer the

amount of the sums advanced, any charges with respect to this amount,

and the revised payment schedule. No further information need be given.

(2) A credit service charge may be made for sums advanced

pursuant to subsection (1) at a rate not in excess of the rate of return

yielded by the credit service charge under the sale or refinancing

agreement, except that with respect to a revolving charge account the

amount of the advance may be added to the unpaid balance of the

account and the seller may make a credit service charge not in excess of

that permitted by the provisions on credit service charge for revolving

charge accounts (§ 2207).