365.130. Assignment of contract--refinance charge, computed how--extension or deferral of due dates, when.

MISSOURI STATUTES AND CODES

365.130. Assignment of contract--refinance charge, computed how--extension or deferral of due dates, when.

Assignment of contract--refinance charge, computed how--extensionor deferral of due dates, when.

365.130. 1. Any person may purchase or acquire or agree to purchaseor acquire from any seller any contract on such terms and conditions and atsuch price as may be agreed upon between them. Filing of the assignmentnotice to the buyer of the assignment, and any requirement that the holdermaintain dominion over the payments or the motor vehicle if repossessedshall not be necessary to the validity of a written assignment of acontract as against creditors, subsequent purchasers, pledges, mortgagesand lien claimants of the seller. Unless the buyer has notice of theassignment of his contract, payment thereunder made by the buyer to thelast known holder of the contract shall be binding upon all subsequentholders.

2. The holder of a retail installment contract upon request by thebuyer may agree to an amendment thereto to extend or defer the scheduleddue date of all or any part of any installment or installments to renew,restate or reschedule the unpaid balance of such contract, and may collectfor same a refinance charge not to exceed an amount computed as follows:If all or any part of any installment or installments is deferred for notmore than two months the holder may at his election charge and collect onthe amount deferred for the period deferred a refinance charge computed ata rate which will not exceed the same yield as is permitted on monthlypayment contracts under subsection 1 of section 365.120; provided that theminimum deferment charge shall be one dollar. Such amendment may alsoinclude payment by the buyer of the additional cost to the holder ofpremiums for continuing in force any insurance coverages provided for inthe contract and any additional necessary official fees. In any otherextension, renewal, restatement or rescheduling of the unpaid balance, therefinance charge may be computed as follows: the sum of the unpaid balanceas of the refinancing date and the cost for any insurance and otherbenefits incidental to the refinancing, any additional necessary officialfees, and any accrued delinquency and collection charges, after deducting arefund credit as for prepayment pursuant to section 365.140, shallconstitute a principal balance, the refinance charge may be computed forthe term of the refinanced contract at the applicable rate for financecharges provided in subsection 1 of section 365.120 obtained byreclassifying the motor vehicle by its year model at the time of therefinancing. The provisions of this chapter relating to minimum financecharges under subsection 2 of section 365.120 and acquisition costs underthe refund schedule in section 365.140 shall not apply in calculatingrefinance charges. The amendment to the contract must be confirmed in awriting which shall set forth the terms of the amendment and the new duedates and amounts of the installments, and shall either be delivered to thebuyer or mailed to him at his address as shown on the contract. Saidwriting together with the original contract and any previous amendmentsthereto shall constitute the retail installment contract.

3. Notwithstanding any other provision of this chapter and uponrequest by the buyer, the holder of a retail installment contract may agreeto an amendment thereto to extend or defer the scheduled due dates on suchcontract with an original amount of six hundred dollars or more, andprovided the debtor agrees in writing, the holder may collect a fee inadvance for allowing the debtor to defer monthly payments on the credit solong as the fee on each deferred period is no more than the lesser of fiftydollars or ten percent of the loan payments deferred; however, a minimumfee of twenty-five dollars is permitted. In addition, under thissubsection no extensions shall be made until the first recurring monthlypayment is collected on any one extension of credit, the original timeprice differential paid to the holder on the retail installment contractremains the same and this subsection applies only to nonprecomputedextensions of credit.