N.Y. Personal Property Law § 408: Credit upon anticipation of payments

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

provisions of any contract or obligation 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 or

obligation included an amount for group credit life insurance a 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.

2. The amount of any such refund credit shall be determined according

to a generally acceptable actuarial method.

If the credit service charge imposed on the retail instalment contract

or obligation is computed pursuant to subdivision four of section four

hundred four of this article, the contract or obligation may be prepaid

in full without penalty.

3. Where the amount of the credit for anticipation of payment is less

than one dollar no refund need be made. Where the earned credit service

charge amounts to less, there may be retained an amount equal to the

minimum credit service charge applicable.

4. 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 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.

5. In the event (i) the maturity of a contract or obligation 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.