17:16C-73 - Prepayment; credit on account; payment without penalty - New Jersey Statutes

17:16C-73.  Prepayment;  credit on account;  payment without penalty
    (a) When the unpaid balance owing on a precomputed home repair contract is repaid in full at any time before the end of the contract period, the holder of  the contract shall allow a credit on account of the precomputed credit service  charge, the amount of which shall be determined by the application of the  formula C = AN  /  D, in which  "C"  represents the amount of the credit to be  given;   "A"  represents the amount of the credit service charge, less an  acquisition cost of $15.00;   "D" represents an amount determined as follows:   there shall be ascribed to each payment-period included in the contract  period, beginning with the first payment-period scheduled by the contract, the  cardinal number descriptive of the number of payment-periods scheduled by the  contract to elapse from the beginning of each such payment-period to the end of  the contract period, and the sum of all such cardinal numbers shall constitute the quantity  "D" ;  and  "N"  represents the difference between the quantity   "D"  and the sum of all the cardinal numbers ascribed to the payment-periods  which have elapsed, in whole or in part, from the date of the contract to the  date upon which such repayment is made.  This section shall not apply when the  amount of the credit is less than $1.00.

    (b) The unpaid balance of a nonprecomputed contract may be paid in full at any time without penalty.

     L.1960, c. 41, p. 169, s. 12.  Amended by L.1966, c. 325, s. 4, eff. Feb. 16,  1967;  L.1980, c. 174, s. 4, eff. Dec. 29, 1980.