State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-16c > 17-16c-43

17:16C-43.  Prepayment;  credit on account
    When the balance owing on a retail installment 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 time price differential, 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 time price differential, 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.

     L.1960, c. 40, p. 158, s. 43.  Amended by L.1966, c. 324, s. 3, eff. Feb. 16,  1967.
 
17:16C-44.Extending due date of contract or installment payment; options
44.The holder of a retail installment contract may extend the scheduled due date of any retail installment contract and defer the scheduled due date of any or all installment payments, or reduce the amount of any or all installments and may, as a consideration therefor, make a total additional charge not to exceed the amount ascertained under either of the following methods of computation at the respective rates indicated by the following options:

Option 1.  The additional charge shall be computed on the amount of the scheduled installment or installments extended, deferred or reduced for the period or periods for which each installment or part thereof is extended, deferred or reduced at the following rates on contracts originally in the respective classifications set forth in section 41 of this act:

Class I.  1% per month;

Class II.  1 1/2% per month;

Class III. 2% per month;

Class IV.  2% per month;

Option 2.  The holder of a retail installment contract by written agreement may renew the entire unpaid balance on any retail installment contract and may make a charge therefor at the rates charged in the original contract from the date of renewal to the maturity of the final installment.  The amount of the balance to be renewed shall be obtained by adding to the existing unpaid balance on the original contract, the cost of any insurance or other benefits for the period of the extension and any accrued default charges and refunding the unearned portion of the time price differential charged according to the formula provided in section 43 of this act; provided, however, that in computing the unearned time price differential charge no allowance shall be taken for the amount of the acquisition cost permitted therein.

L.1960,c.40,s.44.