N.Y. Personal Property Law § 306: Refinancing

§ 306. Refinancing. 1. The holder of a retail instalment contract may,

upon agreement with the buyer, extend the scheduled due date or defer

the scheduled payment of all or any part of any instalment or

instalments payable thereunder. The agreement for such extension or

deferment must be in writing and signed by the parties thereto. The

holder may charge and contract for the payment of an extension or

deferred charge by the buyer and collect and receive the same, at the

rate or rates agreed to by the holder and the buyer on the amount of the

instalment or instalments, or part thereof, extended or deferred for the

period of extension or deferral. Such period shall not exceed the period

from the date when such extended or deferred instalment or instalments,

or part thereof, would have been payable in the absence of such

extension or deferral, to the date when such instalment or instalments,

or part thereof, are made payable under the agreement of extension or

deferment; except that a minimum charge of one dollar for the period of

extension or deferral may be made in any case where the extension or

deferral charge, when computed at such rate or rates, amounts to less

than one dollar. Such agreement may also provide for the payment by the

buyer of the additional cost to the holder of the contract of premiums

for continuing in force, until the end of such period of extension or

deferral, any insurance coverages provided for in the contract, subject

to the provisions of subdivision six of section three hundred two.

2. The holder of a retail instalment contract may, upon agreement in

writing with the buyer, refinance the payment of the unpaid time balance

of the contract by providing for a new schedule of instalment payments.

The holder may charge and contract for the payment of a refinance charge

by the buyer at the rate or rates agreed to by the holder and the buyer

and collect and receive the same, but such refinance charge shall be

based upon the amount refinanced, plus any additional cost of insurance

and of official fees incident to such refinancing and any accrued

collection and delinquency charges, after the deduction of a refund

credit in an amount equal to that to which the buyer would have been

entitled under section three hundred five of this chapter if he had

prepaid in full his obligations under the contract but, in computing

such refund credit, there shall not be allowed such an amount as will

bring the earned credit service charge up to fifteen dollars. Such

agreement for refinancing may also provide for the payment by the buyer

of the additional cost to the holder of the contract of premiums for

continuing in force, until the maturity of the contract as refinanced,

any insurance coverages provided for therein, subject to the provisions

of subdivision six of section three hundred two. The refinancing

agreement 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.