2010 New York Code
PEP - Personal Property
Article 10 - (401 - 422) RETAIL INSTALMENT SALES ACT
409 - Refinancing.

§  409.  Refinancing. 1. The holder of a retail instalment contract or
  obligation or note may,  upon  agreement  with  the  buyer,  extend  the
  scheduled  due date or defer the scheduled payment of all or of any part
  of any instalment or instalments payable thereunder. The  agreement  for
  such extension or deferment must be in writing and signed by the parties
  thereto.  The  holder  may  charge  and  contract  for the payment of an
  extension or deferral charge by the buyer and collect  and  receive  the
  same,  at  the  rate  or  rates agreed to by holder and the buyer on the
  amount of the instalment or instalments, or part  thereof,  extended  or
  deferred for the period of extension or deferral.  Such period shall not
  exceed  the  period  from  the  date  when  such  extended  or  deferred
  instalment or instalments, or part thereof, would have been  payable  in
  the  absence  of  such  extension  or  deferral,  to  the date when such
  instalment or instalments, or part thereof, are made payable  under  the
  agreement of extension or deferment; except that a minimum charge of one
  dollar  for  the period of extension or deferral may be made in any case
  where the extension or deferral charge,  when  computed  at  such  rate,
  amounts to less than one dollar. Such agreement may also provide for the
  payment  by  the  buyer  of  the  additional  cost  to the holder of the
  contract or obligation or note of  premiums  for  continuing  in  force,
  until  the  end  of  such period of extension or deferral, any insurance
  coverages provided for in the contract or  obligation,  subject  to  the
  provisions of subdivision five of section four hundred two.
    2.  The  holder  of a retail instalment contract or obligation or note
  may, upon agreement in writing with the buyer, refinance the payment  of
  the  unpaid  time  balance  of  the  contract  or  obligation or note by
  providing for a new schedule of  instalment  payments.  The  holder  may
  charge  and  contract for the payment of a refinance charge by the buyer
  and collect and receive the same, but such refinance charge (1) shall be
  based upon the amount refinanced, plus any additional cost of  insurance
  and  of  official fees incident to such refinancing, after the deduction
  of a refund credit in an amount equal to that to which the  buyer  would
  have been entitled under section four hundred eight if he had prepaid in
  full  his  obligations  under the contract or obligation or note, but in
  computing such refund credit there shall  not  be  allowed  the  minimum
  earned  credit service charge as authorized by such section, and (2) may
  not exceed the rate of credit service charge provided under section four
  hundred four of this chapter. Such agreement for  refinancing  may  also
  provide  for  the  payment  by  the  buyer of the additional cost to the
  holder of the contract or obligation or note of premiums for  continuing
  in  force,  until  the maturity of the contract or obligation or note as
  refinanced, any insurance coverages provided for therein, subject to the
  provisions of subdivision five of  section  four  hundred  two  of  this
  chapter. The refinancing agreement 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.