§ 5-2-205 — Finance charge on refinancing

(1) With respect to a consumer
credit transaction, the creditor may by agreement with the consumer refinance the
unpaid balance and may contract for and receive a finance charge based on the
amount financed resulting from the refinancing at a rate not exceeding that
permitted by the provisions on finance charges. For the purpose of determining the
finance charge permitted, the amount financed resulting from the refinancing
comprises the following:

(a) If the transaction was not precomputed, the total of the unpaid balance
and the accrued charges on the date of the refinancing, or, if the transaction was
precomputed, the amount that the consumer would have been required to pay upon
prepayment pursuant to the provisions on rebate upon prepayment contained in
section 5-2-211 on the date of refinancing; except that, for the purpose of
computing this amount, no minimum charge described in section 5-2-201 shall be
allowed; and

(b) Appropriate additional charges described in section 5-2-202, payment of
which is deferred.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1200, � 1, effective July 1.