Nebraska Revised Statutes Chapter 45. Interest, Loans, and Debt § 45-1106. Guaranteed asset protection waiver agreement; authorized terms; cancellation or early termination of finance agreement; refund; calculation; disposition

(1) Guaranteed asset protection waiver agreements may be cancelable or noncancelable after the free-look period. A creditor or the creditor's designee may offer a borrower a waiver that does not provide for a refund if the creditor or the creditor's designee also offers the borrower a bona fide option to purchase a comparable waiver that provides for a refund. Guaranteed asset protection waivers shall provide that if a borrower cancels a waiver within the free-look period, the borrower will be entitled to a full refund of the purchase price, so long as no benefits have been provided. In the event benefits have been provided, the borrower may receive a full or partial refund pursuant to the terms of the waiver.

(2) In the event of a borrower's cancellation of the guaranteed asset protection waiver or early termination of the finance agreement, after the agreement has been in effect beyond the free-look period, the borrower may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. The creditor or the creditor's designee shall calculate the amount of the refund using a method at least as favorable to the borrower as the actuarial method. In order to receive a refund, the borrower, in accordance with any applicable terms of the waiver, must provide a written request to the creditor or the creditor's designee within ninety days after the event terminating the waiver or finance agreement.

(3) If the cancellation of a guaranteed asset protection waiver occurs as a result of a default under the finance agreement or the repossession of the motor vehicle associated with the finance agreement, or any other termination of the finance agreement, any refund due may be paid directly to the creditor or the creditor's designee and applied as set forth in subsection (4) of this section.

(4) Any cancellation refund under this section may be applied by the creditor or the creditor's designee as a reduction of the amount owed under the finance agreement unless the borrower can show that the finance agreement has been paid in full.