GNYADA 2019 Membership Directory & Services Guide

enterprises. The list is frequently updated although a searchable version of the list is published on OFAC’s website, http://www.treasury.gov/ofac/downloads/sdnlist.txt . For compliance with the USA Patriot Act, you must run all of your customers —both cash and credit — against the SDN List (including the names of any individuals who directly or indirectly own 50% or more of any entity that is a party to a new transaction). You should also run service and parts customers who make unusual orders (e.g., high quantities of materials that could be used in making an explosive device) or who otherwise seem suspicious. You may conduct the search online yourself, or you can purchase a product from a credit bureau or an identity verification service to systematically check a customer against the current SDN List. If you get a preliminary match, OFAC lists a series of steps to determine if you have a truematch or a false positive. If you believe you have a true match after following those steps, you must call OFAC at their designated number, and you cannot do business with that person unless instructed otherwise. You must report each blocked transaction to OFAC (there is an optional form for reporting blocked transactions: http://www.treasury.gov/resource-center/ sanctions/Pages/ forms-index.aspx, and submit an annual report of all blocked transactions (using Form TD F 90-22.50 which can be found at: http://www.treasury.gov/resourcecenter/ sanctions/Pages/forms-index.aspx). Car Buyer’s Bill of Rights In 2006, California passed significant legislation, known as the“Car Buyer’s Bill of Rights,”affecting the way dealers sell and finance the purchase of motor vehicles. Since then, several states have passed their own versions of the Car Buyer’s Bill of Rights. These laws generally give consumers additional rights and may, among other things, require dealers in affected states to make additional written disclosures to consumers with respect to certain charges and aftermarket products, as well as providing standards for selling “certified” used vehicles. You should consult with your attorney to ensure that your procedures are designed to comply with the requirements of the law of the jurisdiction applicable to the transaction. Spot Deliveries Spot delivery refers to the practice of a dealer placing a consumer in a vehicle “on the spot”to make a sale – prior to obtaining a finance source’s approval to purchase the financing contract. The sale is made contingent upon the dealer obtaining financing for the purchase, typically by a finance source agreeing to buy a RISC signed by the customer and the dealer. Spot deliveries are regulated in many states, and in a few states are either prohibited or significantly restricted. State regulation of spot delivery varies greatly. Many states have specific requirements for terms on which spot deliveries may be conducted, disclosures that must be provided to consumers, and the form of the spot delivery agreement. For example, a few states require that the conditions for delivery be included in

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the RISC, while others require the spot delivery terms to be in a stand-alone document. Also, consider whether the applicable law addresses certain spot delivery practices, such as: • Limiting fees for miles driven by the customer. • Prohibiting the sale of the customer’s trade-in vehicle until the deal is finalized. • Limiting the number of days to obtain financing approval.

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