365.140. Prepayment of debt under retail installment contract--refund, how computed. - Missouri Statutes

Prepayment of debt under retail installment contract--refund, howcomputed.

365.140. Notwithstanding the provisions of any retail installmentcontract to the contrary any buyer may prepay in full, whether by paymentin cash, extension or renewal, at any time before maturity the debt of anyretail installment contract and on so paying the debt shall receive arefund credit thereon for the anticipation of payment. The amount of therefund shall be calculated by the actuarial method. The lender shallretain no more interest than is actually earned whenever a retailinstallment contract is prepaid. Any insurance rendered unnecessary byreason of prepayment shall be canceled by the holder and any refund ofpremiums received by the holder shall be treated in accordance with theprovisions of subsection 2 of section 365.080.

(L. 1963 p. 466 § 13, A.L. 1986 H.B. 1207, A.L. 2002 S.B. 895)

Effective 7-01-03