N.Y. Banking Law § 574: Credit upon anticipation of payments

§ 574. Credit upon anticipation of payments. 1. Notwithstanding the

provisions of any premium finance agreement to the contrary, any insured

may pay it in full at any time before the maturity of the final

instalment of the balance thereof and, if he does so and the agreement

included an amount for service charge, shall receive and be entitled to

receive for such anticipation a refund credit thereon.

2. The amount of any such refund credit shall represent at least as

great a proportion of the service charge, if any, as the sum of the

periodic balances after the month in which prepayment is made bears to

the sum of all periodic balances under the schedule of instalments in

the agreement. Such refund shall be computed in the service charge

exclusive of the additional charge. Where the amount of the refund

credit for anticipation of payment is less than one dollar, no refund

need be made.