§ 409 — Refinancing

New York § 409

• Jurisdiction: New York
• Law PEP: Personal Property
• Art. 10: Retail Instalment Sales Act

Text

§ 409. Refinancing. 1. The holder of a retail instalment contract or\nobligation or note may, upon agreement with the buyer, extend the\nscheduled due date or defer the scheduled payment of all or of any part\nof any instalment or instalments payable thereunder. The agreement for\nsuch extension or deferment must be in writing and signed by the parties\nthereto. The holder may charge and contract for the payment of an\nextension or deferral charge by the buyer and collect and receive the\nsame, at the rate or rates agreed to by holder and the buyer on the\namount of the instalment or instalments, or part thereof, extended or\ndeferred for the period of extension or deferral. Such period shall not\nexceed the period from the date when such extended or deferred\ninstalment or instalments, or part thereof, would have been payable in\nthe absence of such extension or deferral, to the date when such\ninstalment or instalments, or part thereof, are made payable under the\nagreement of extension or deferment; except that a minimum charge of one\ndollar for the period of extension or deferral may be made in any case\nwhere the extension or deferral charge, when computed at such rate,\namounts to less than one dollar. Such agreement may also provide for the\npayment by the buyer of the additional cost to the holder of the\ncontract or obligation or note of premiums for continuing in force,\nuntil the end of such period of extension or deferral, any insurance\ncoverages provided for in the contract or obligation, subject to the\nprovisions of subdivision five of section four hundred two.\n 2. The holder of a retail instalment contract or obligation or note\nmay, upon agreement in writing with the buyer, refinance the payment of\nthe unpaid time balance of the contract or obligation or note by\nproviding for a new schedule of instalment payments. The holder may\ncharge and contract for the payment of a refinance charge by the buyer\nand collect and receive the same, but such refinance charge (1) shall be\nbased upon the amount refinanced, plus any additional cost of insurance\nand of official fees incident to such refinancing, after the deduction\nof a refund credit in an amount equal to that to which the buyer would\nhave been entitled under section four hundred eight if he had prepaid in\nfull his obligations under the contract or obligation or note, but in\ncomputing such refund credit there shall not be allowed the minimum\nearned credit service charge as authorized by such section, and (2) may\nnot exceed the rate of credit service charge provided under section four\nhundred four of this chapter. Such agreement for refinancing may also\nprovide for the payment by the buyer of the additional cost to the\nholder of the contract or obligation or note of premiums for continuing\nin force, until the maturity of the contract or obligation or note as\nrefinanced, any insurance coverages provided for therein, subject to the\nprovisions of subdivision five of section four hundred two of this\nchapter. The refinancing agreement shall set forth all items required to\nbe disclosed by the act of congress entitled "Truth in Lending Act" and\nthe regulations thereunder, as such act and regulations may from time to\ntime be amended.\n