Sec. 36a-784. (Formerly Sec. 42-97). Renewals and extensions.
Sec. 36a-784. (Formerly Sec. 42-97). Renewals and extensions. Whenever any
sales finance company or retail seller renews or extends the installments remaining
unpaid so that the retail installment contract is both extended beyond its original date
of final payment and the installments are reduced or increased in amount, such renewal
or extension agreement shall be in writing. Such sales finance company or retail seller
may, any law to the contrary notwithstanding, make or collect a total additional charge
therefor not exceeding an amount equivalent to a true rate of interest of twelve per cent
per annum on the respective descending balances computed from the date of the oldest
unpaid installment existing prior to such renewal or extension. When the renewal or
extension does not include both an extension beyond the original date of final payment
and a reduction or increase in the amount of the installments, such sales finance company
or retail seller may make a total additional charge therefor up to the maximum lawful
contract rate of interest permitted under the laws of this state but not exceeding twelve
per cent true interest per annum, on the payment or payments extended for the period
or periods of the extension.
(1949 Rev., S. 6702.)
History: Sec. 42-97 transferred to Sec. 36a-784 in 1995.
See Sec. 42a-9-203 re attachment and enforceability of security interests.