2023 New York Laws › PEP - Personal Property › Article 10 - Retail Instalment Sales Act › 410 - Add-Ons to and Consolidations of Retail Instalment Contracts and Obligations.

§  410.  Add-ons  to and consolidations of retail instalment contracts
and obligations. 1. A retail instalment  contract  or  obligation  which
otherwise  conforms  to the requirements of this article may contain the
promise or agreement of the buyer to pay in substantially equal periodic
instalments the consolidated total of the principal balance thereof  and
the unpaid time balance or balances owing by the buyer under one or more
previous  contracts  or  obligations,  together  with  a  credit service
charge; if it does so:
(a) The contract or obligation shall set forth all items  required  to
be  disclosed by the act of congress entitled "Truth in Lending Act" and
the regulations thereunder, as such act and regulations may from time to
time be amended.
(b) Subject to the provisions of section four hundred four and to  the
provisions  of  paragraph  (c)  of  this subdivision, the credit service
charge to be included in such consolidated total may equal but shall not
exceed the larger of the  amounts  determined  by  applying  the  credit
service charge at the rate or rates agreed to by the buyer:
(1)  to  the total of the principal balance of the subsequent contract
or obligation and the principal balance  of  any  previous  contract  or
obligation  included  in  the consolidated total determined by deducting
from the then unpaid time  balance  thereof  any  then  unearned  credit
service  charge  in  an  amount  not  less  than  the  refund credit for
anticipation provided for  in  section  four  hundred  eight  (computed,
however,  without  the  allowance  of  any minimum earned credit service
charge), for the period from the date thereof to and including the  date
when the final instalment of such consolidated total is payable; or
(2)  to the principal balance of the subsequent contract or obligation
for the period from the date thereof to and including the date when  the
final  instalment  of such consolidated total is payable and, if the due
date of the final instalment of such consolidated total  is  later  than
the  due  date  of  the  final  instalment  of  any previous contract or
obligation included in the consolidated total, on the time balance  then
unpaid  on  such  previous contract or obligation from the date when the
final instalment  thereof  was  payable  to  the  date  when  the  final
instalment of such consolidated total is payable.
(c)  A  consolidation  of  a  retail instalment contract or obligation
entered into after the effective date of this paragraph  with  a  retail
instalment  contract  or  obligation entered into prior to the effective
date of this paragraph shall be governed by the limitations  on  maximum
credit  service charges contained in subdivision one of this section and
section four hundred four as they were in effect  immediately  prior  to
the effective date of this paragraph.
2.  Where  a  buyer  makes  any  subsequent  purchase of goods under a
contract from a seller from whom he had previously purchased goods under
one or more contracts and the amounts due under such  previous  contract
or  contracts  have not been fully paid, and where the total of the time
balance of the subsequent contract and the unpaid time balances owing by
the buyer under the previous contracts does not  exceed  three  thousand
dollars,  such contract, if it otherwise conforms to the requirements of
this article, may provide that the goods purchased  under  the  previous
contract  or  contracts  shall be security for the goods purchased under
the subsequent contract but only until such time  as  (a)  the  purchase
price  under  the  previous  contract or contracts is fully paid, or (b)
twenty per centum of the time sale price of the  goods  purchased  under
the subsequent contract has been paid, whichever event first occurs.
3.  When  such  subsequent  purchase is made, the entire amount of all
payments made previous thereto shall be  deemed  to  have  been  applied
toward  the  payment of the previous purchase or purchases. Each payment

thereafter received shall be deemed  to  be  allocated  to  all  of  the
various  purchases  in the same proportion or ratio as the original cash
sale prices of the various purchases bear  to  one  another;  where  the
amount  of  each  instalment payment is increased in connection with the
subsequent purchase, the subsequent payments (at the seller's  election)
may  be  deemed  to  be  allocated  as  follows:  an amount equal to the
original rate, to the previous purchase, and  an  amount  equal  to  the
increase,  to the subsequent purchase. However the amount of any initial
or down-payment on  the  subsequent  purchase  shall  be  deemed  to  be
allocated   in   its  entirety  to  such  purchase.  The  provisions  of
subdivisions two and three of this section  shall  not  apply  to  cases
involving  equipment,  parts or other merchandise attached or affixed to
goods previously purchased or repairs or services rendered by the seller
in connection therewith at the buyer's request.