Printable Format16a-1-202. (UCCC) Exclusions. K.S.A. 16a-1-101 through 16a-6-414* do not apply to:
(1) Extensions of credit to government or governmental agencies or instrumentalities;
(2) the sale of insurance by an insurer if the insured is not obligated to pay installments of the premium and the insurance may terminate or be cancelled after nonpayment of an installment of the premium, except as otherwise provided in article 4 of chapter 40 of the Kansas Statutes Annotated, and amendments thereto;
(3) transactions under public utility or common carrier tariffs if a subdivision or agency of this state or of the United States regulates the charges for the services involved, the charges for delayed payment, and any discount allowed for early payment;
(4) pawnbrokers licensed and regulated pursuant to statutes of this state, except with respect to disclosure;**
(5) transactions covered by the Kansas insurance premium finance company act, K.S.A. 40-2601 et seq., and amendments thereto.
History: L. 1973, ch. 85, § 10; L. 2024, ch. 6, § 36; January 1, 2025.
KANSAS COMMENT, 2010
Nonconsumer credit transactions are of course outside the scope of the U3C. In addition, several classes of transactions are expressly excluded in this section even though they might otherwise fall within the ambit of the U3C. Subsections (1) and (3) are derived from TILA 15 U.S.C. § 1603, which exempts government agencies and public utilities from truth in lending requirements. With respect to subsection (2), article 4 of the U3C covers the insurance aspects of consumer credit transactions, but the sale of insurance itself is excluded insofar as no installment obligation arises and cancellation may take place at any time. With respect to subsection (4), pawnbroker transactions are exempted from the U3C except for disclosure; they are regulated as to charges, licensing and other matters by K.S.A. 16-706 et seq. With respect to subsection (5), insurance premium financing is excluded from the U3C because of its uniqueness and its unusual rate structure, which is comprehensively covered by K.S.A. 40-2601 et seq.
Other transactions are inferentially excluded for failure to qualify under the definitions of the three key transactions covered by the U3C, "consumer credit sale," "consumer lease," and "consumer loan," or by one of the specific exclusions listed in those definitions. See K.S.A. 16a-1-301(14), (16), and (17), and the corresponding Kansas comments. One of the major categories of consumer transactions excluded from coverage under the U3C for failure to so qualify is the lease-purchase agreement or rent-to-own contract. Those agreements are now comprehensively regulated by the Kansas consumer lease-purchase agreement act, K.S.A. 50-680 et seq.
Revisor's Note:
* The phrase ", and amendments thereto," should have been included.
** The word "and" should have been included.
Law Review and Bar Journal References:
Public utility late charges, 26 K.L.R. 595, 599 (1978).
"Survey of Kansas Law: Consumer Law," John C. Maloney, 27 K.L.R. 197, 199 (1979).
CASE ANNOTATIONS
1. Public utilities are specifically excluded from application of this section. Jones v. Kansas Gas and Electric Co., 222 Kan. 390, 398, 565 P.2d 597 (1977).