WVC 46 A- 2 - 109
§46A-2-109. Debt secured by cross-collateral.
(1) If debts arising from two or more consumer credit sales,
other than sales primarily for an agricultural purpose or
pursuant to a revolving charge account, are secured by cross-
collateral and consolidated into one debt payable on a single
schedule of payments, and the debt is secured by security
interests taken with respect to one or more of the sales,
payments received by the seller after the taking of the cross-
collateral and the consolidation are deemed, for the purpose of
determining the amount of the debt secured by the various
security interests, to have been first applied to the payment of
the debts arising from the sales first made. To the extent debts
are paid according to this section, security interests in items
of property terminate as the debts originally incurred with
respect to each item are paid.
(2) Payments received by the seller upon a revolving charge
account are deemed, for the purpose of determining the amount of
the debt secured by the various security interests, to have been
applied first to the payment of sales finance charges in the
order of their entry to the account and then to the payment of
debts in the order in which the entries to the account showing
the debts were made.
(3) If the debts consolidated arose from two or more sales
made on the same day, payments received by the seller are deemed,
for the purpose of determining the amount of the debt secured by
the various security interests, to have been applied first to the
payment of the smallest debt.
Note: WV Code updated with legislation passed through the 2016 Regular Session
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