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371.260 Time price differential -- Prepayment.
(1)
(2)
Notwithstanding the provisions of any other law, a retail installment contract
payable in substantially equal successive monthly installments beginning one
(1) month from the date of the contract may provide for, and the seller or holder
may then charge, collect, and receive a time price differential.
Notwithstanding the provisions of any retail installment contract to the contrary,
any buyer may prepay in full the unpaid time balance thereof at any time before
its final due date and, if he does so, shall receive a refund credit thereon for
such prepayment. The amount of such refund credit shall represent at least as
great a proportion of the original time price differential, after deducting
therefrom a maximum of twenty dollars ($20), as (a) the sum of the monthly
unpaid balances under the schedule of payments in the contract beginning as
of the date after such prepayment which is the next succeeding monthly
anniversary date of the due date of the first installment under the contract, or, if
the prepayment is prior to the due date of the first installment under the
contract, then as of the date after such prepayment which is the next
succeeding monthly anniversary date of the date of the contract, bears to (b)
the sum of all the monthly unpaid balances under the schedule of installment
payments in the contract. Where the amount of refund credit is less than one
dollar ($1), no refund credit need be made.
Effective:July 15, 1996
History: Amended 1996 Ky. Acts ch. 59, sec. 1, effective July 15, 1996. -- Created
1962 Ky. Acts ch. 136, sec. 2(9) and (10).
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