2012 New York Consolidated Laws
PEP - Personal Property
Article 10 - (401 - 422) 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.