N.Y. PEP Law § 306 — New York Code / Act PEP / Article 9 / Section 306
Refinancing
Status: in_force

§ 306. Refinancing. 1. The holder of a retail instalment contract may,\nupon agreement with the buyer, extend the scheduled due date or defer\nthe scheduled payment of all or any part of any instalment or\ninstalments payable thereunder. The agreement for such extension or\ndeferment must be in writing and signed by the parties thereto. The\nholder may charge and contract for the payment of an extension or\ndeferred charge by the buyer and collect and receive the same, at the\nrate or rates agreed to by the holder and the buyer on the amount of the\ninstalment or instalments, or part thereof, extended or deferred for the\nperiod of extension or deferral. Such period shall not exceed the period\nfrom the date when such extended or deferred instalment or instalments,\nor part thereof, would have been payable in the absence of such\nextension or deferral, to the date when such instalment or instalments,\nor part thereof, are made payable under the agreement of extension or\ndeferment; except that a minimum charge of one dollar for the period of\nextension or deferral may be made in any case where the extension or\ndeferral charge, when computed at such rate or rates, amounts to less\nthan one dollar. Such agreement may also provide for the payment by the\nbuyer of the additional cost to the holder of the contract of premiums\nfor continuing in force, until the end of such period of extension or\ndeferral, any insurance coverages provided for in the contract, subject\nto the provisions of subdivision six of section three hundred two.\n  2. The holder of a retail instalment contract may, upon agreement in\nwriting with the buyer, refinance the payment of the unpaid time balance\nof the contract by providing for a new schedule of instalment payments.\nThe holder may charge and contract for the payment of a refinance charge\nby the buyer at the rate or rates agreed to by the holder and the buyer\nand collect and receive the same, but such refinance charge shall be\nbased upon the amount refinanced, plus any additional cost of insurance\nand of official fees incident to such refinancing and any accrued\ncollection and delinquency charges, after the deduction of a refund\ncredit in an amount equal to that to which the buyer would have been\nentitled under section three hundred five of this chapter if he had\nprepaid in full his obligations under the contract but, in computing\nsuch refund credit, there shall not be allowed such an amount as will\nbring the earned credit service charge up to fifteen dollars. Such\nagreement for refinancing may also provide for the payment by the buyer\nof the additional cost to the holder of the contract of premiums for\ncontinuing in force, until the maturity of the contract as refinanced,\nany insurance coverages provided for therein, subject to the provisions\nof subdivision six of section three hundred two. The refinancing\nagreement shall set forth all items required to be disclosed by the act\nof congress entitled "Truth in Lending Act" and the regulations\nthereunder, as such act and regulations may from time to time be\namended.\n