§ 305. Credit upon anticipation of payments. 1. Notwithstanding the\nprovisions of any retail instalment contract to the contrary, any buyer\nmay pay it in full at any time before the maturity of the final\ninstalment of the time balance thereof and if he does so shall receive\nand be entitled to receive a refund credit thereon and if the contract\nincluded an amount for group credit life insurance, the further refund\ncredit thereon for such anticipation, whether or not the maturity of the\ntime balance of the contract was accelerated by the holder by reason of\nthe buyer's default or otherwise. The amount of any such refund credit\nshall be the unearned portion of the credit service charge, after first\ndeducting an acquisition cost of fifteen dollars, or, if the contract\nhas been extended, deferred or refinanced, the additional charge\ntherefor, determined according to a generally accepted actuarial method.\nWhere the amount of the credit for anticipation of payment is less than\none dollar, no refund need be made.\n If the credit service charge imposed on the retail instalment contract\nis computed pursuant to subdivision four of section three hundred three\nof this article the contract may, after deduction of the acquisition\ncost of fifteen dollars, be prepaid in full without penalty.\n 2. The amount of the further refund credit for group credit life\ninsurance shall be equal to the excess of the amount included in the\ncontract for group credit life insurance over the premiums paid or\npayable by the holder of the contract for such insurance, if such\npremiums were paid or payable periodically, or the refund for unearned\ngroup credit life insurance premium received or receivable by the holder\nof the contract, if such premium was paid or payable in a lump sum,\nprovided that no such further refund credit need be made if the amount\nthereof would be less than one dollar.\n 3. In the event (i) the maturity of the contract is accelerated due to\nthe default of the buyer or otherwise and judgment is obtained, or (ii)\nrepayment is made pursuant to group credit life insurance, the buyer or\nhis legal representative, as the case may be, shall be entitled to the\nsame refund credits as if the contract had been prepaid in full on the\ndate of acceleration or repayment.\n
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