2012 New York Consolidated Laws
PEP - Personal Property
Article 9 - (301 - 316) MOTOR VEHICLE RETAIL INSTALMENT SALES ACT
305 - Credit upon anticipation of payments.

 
    §  305.  Credit  upon anticipation of payments. 1. Notwithstanding the
  provisions of any retail instalment contract to the contrary, any  buyer
  may  pay  it  in  full  at  any  time  before  the maturity of the final
  instalment of the time balance thereof and if he does so  shall  receive
  and  be  entitled to receive a refund credit thereon and if the contract
  included an amount for group credit life insurance, the  further  refund
  credit thereon for such anticipation, whether or not the maturity of the
  time  balance of the contract was accelerated by the holder by reason of
  the buyer's default or otherwise. The amount of any such  refund  credit
  shall  be the unearned portion of the credit service charge, after first
  deducting an acquisition cost of fifteen dollars, or,  if  the  contract
  has  been  extended,  deferred  or  refinanced,  the  additional  charge
  therefor, determined according to a generally accepted actuarial method.
  Where the amount of the credit for anticipation of payment is less  than
  one dollar, no refund need be made.
    If the credit service charge imposed on the retail instalment contract
  is  computed pursuant to subdivision four of section three hundred three
  of this article the contract may, after  deduction  of  the  acquisition
  cost of fifteen dollars, be prepaid in full without penalty.
    2.  The  amount  of  the  further  refund credit for group credit life
  insurance shall be equal to the excess of the  amount  included  in  the
  contract  for  group  credit  life  insurance  over the premiums paid or
  payable by the holder of  the  contract  for  such  insurance,  if  such
  premiums  were  paid or payable periodically, or the refund for unearned
  group credit life insurance premium received or receivable by the holder
  of the contract, if such premium was paid or  payable  in  a  lump  sum,
  provided  that  no such further refund credit need be made if the amount
  thereof would be less than one dollar.
    3. In the event (i) the maturity of the contract is accelerated due to
  the default of the buyer or otherwise and judgment is obtained, or  (ii)
  repayment  is made pursuant to group credit life insurance, the buyer or
  his legal representative, as the case may be, shall be entitled  to  the
  same  refund  credits as if the contract had been prepaid in full on the
  date of acceleration or repayment.