365.140 - Prepayment of debt under retail installment contract — refund, how computed.

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Notwithstanding the provisions of any retail installment contract to the contrary any buyer may prepay in full, whether by payment in cash, extension or renewal, at any time before maturity the debt of any retail installment contract and on so paying the debt shall receive a refund credit thereon for the anticipation of payment.The amount of the refund shall be calculated by the actuarial method.The lender shall retain no more interest than is actually earned whenever a retail installment contract is prepaid.Any insurance rendered unnecessary by reason of prepayment shall be cancelled by the holder and any refund of premiums received by the holder shall be treated in accordance with the provisions of subsection 2 of section 365.080.

(L. 1963 p. 466 § 13, A.L. 1986 H.B. 1207, A.L. 2002 S.B. 895)

Effective 7-01-03