367.390 Right to refinance consumer loan or consumer credit transaction --
Conditions -- Exception.
(1) With respect to a consumer loan or consumer credit transaction, other than one
primarily for an agricultural purpose or one pursuant to a revolving loan account or <br>a revolving charge account, if any scheduled payment is more than twice as large as <br>the average of earlier scheduled payments, the debtor has the right to refinance the <br>amount of that payment at the time it is due without penalty. The terms of the <br>refinancing shall be no less favorable to the debtor than the terms of the original <br>loan or consumer credit transaction. These provisions do not apply to the extent that <br>the payment schedule is adjusted to the seasonal or irregular income of the debtor.
(2) Notwithstanding any other provision of this section, this section shall not apply to a
consumer loan or consumer credit transaction directly between a debtor and a <br>financial institution in connection with the purchase or construction of residential <br>property where payment of such loan or transaction is secured by a mortgage lien <br>upon such property.
Effective: July 15, 1980 <br>History: Amended 1980 Ky. Acts ch. 170, sec. 1, effective July 15, 1980. -- Created
1972 Ky. Acts ch. 34, sec. 1.
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