16a-3-308

Chapter 16a.--CONSUMER CREDIT CODE

Part 3 LIMITATIONS ON AGREEMENTS AND PRACTICES
Article 3.--REGULATION OF AGREEMENTS AND PRACTICES

     
16a-3-308.   (UCCC) Balloon payments.
With respect to a consumer credit transaction, other than one
pursuant to
open end credit if any
scheduled payment is more than twice as large as the average of earlier
scheduled payments, the consumer has the right to refinance the amount
of that payment at the time it is due without penalty. The terms of the
refinancing shall be no less favorable to the consumer than the terms of
the original transaction. These provisions do not apply to the extent
that the payment schedule is adjusted to the seasonal or irregular
income of the consumer or to a note secured by a real estate mortgage.

     
History:   L. 1973, ch. 85, § 54; L. 1981, ch. 93, § 10;
L. 1991, ch. 73, § 1;
L. 2002, ch. 125, § 1;
L. 2009, ch. 29, § 20; July 1.