KRS 190.120: Payment in full before maturity.

(1) If the finance charge applicable to the retail installment contract has been

determined by a precomputed method, the retail buyer may pay in full at any time

before the stated maturity date and upon such prepayment in full the retail buyer

shall receive a refund of a portion of the finance charge not less than the refund

computed in accordance with the Rule of 78's. An acquisition cost of twenty -five

dollars ($25) shall be deducted from the finance charge before computation of the

refund. Where the refund i s less than one dollar ($1) no refund need be made and

acceleration of the balance by the seller, caused by the default of the buyer or

otherwise, shall not affect the date of computation. Any balance remaining unpaid

as of the stated maturity date shall t hen be subject to accumulation of additional

finance charges at the rate specified in the contract.

(2) If the finance charge applicable to the retail installment contract has or will be

determined by a simple interest method, the retail buyer may pay in f ull at any time

before the stated maturity date without penalty, except that the holder may collect

and receive a minimum finance charge of twenty-five dollars ($25) in any event.