16a-2-504. (UCCC) Finance charge on refinancing.
16a-2-504
16a-2-504. (UCCC) Finance charge on refinancing.
With respect to a consumer credit transaction, the creditor may by
agreement with the consumer refinance the unpaid balance and may
contract for and receive a finance charge based on the amount financed
resulting from the refinancing at a rate not exceeding that permitted by
the provisions on finance charge for consumer credit sales other than
open end credit (section 16a-2-201) if a consumer credit sale is
refinanced, or for consumer loans (subsections (1) or (2) of section
16a-2-401, whichever is appropriate) if a consumer loan is refinanced.
For the purpose of determining the finance charge permitted, the amount
financed resulting from the refinancing shall be comprised of the
total of the unpaid
balance and the accrued charges on the date of the refinancing.
History: L. 1973, ch. 85, § 32;
L. 1993, ch. 200, § 9; Jan. 1, 1994.