N.Y. Personal Property Law § 409: Refinancing

§ 409. Refinancing. 1. The holder of a retail instalment contract or

obligation or note may, upon agreement with the buyer, extend the

scheduled due date or defer the scheduled payment of all or of 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 deferral charge by the buyer and collect and receive the

same, at the rate or rates agreed to by 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,

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 or obligation or note of premiums for continuing in force,

until the end of such period of extension or deferral, any insurance

coverages provided for in the contract or obligation, subject to the

provisions of subdivision five of section four hundred two.

2. The holder of a retail instalment contract or obligation or note

may, upon agreement in writing with the buyer, refinance the payment of

the unpaid time balance of the contract or obligation or note 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

and collect and receive the same, but such refinance charge (1) shall be

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

and of official fees incident to such refinancing, after the deduction

of a refund credit in an amount equal to that to which the buyer would

have been entitled under section four hundred eight if he had prepaid in

full his obligations under the contract or obligation or note, but in

computing such refund credit there shall not be allowed the minimum

earned credit service charge as authorized by such section, and (2) may

not exceed the rate of credit service charge provided under section four

hundred four of this chapter. Such agreement for refinancing may also

provide for the payment by the buyer of the additional cost to the

holder of the contract or obligation or note of premiums for continuing

in force, until the maturity of the contract or obligation or note as

refinanced, any insurance coverages provided for therein, subject to the

provisions of subdivision five of section four hundred two of this

chapter. 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.