190.120 Payment in full before maturity. - Kentucky Statutes

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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 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 is 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 then 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 full 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. Effective: July 13, 1984
History: Amended 1984 Ky. Acts ch. 391, sec. 4, effective July 13, 1984. -- Created 1956 Ky. Acts ch. 105, sec. 4, effective July 1, 1956.