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190.120 Payment in full before maturity.

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190.120 Payment in full before maturity. (1) If the finance charge applicable to the retail installment contract has been determined by a precomputed method, the retail buyer may pay in full at any time <br>before the stated maturity date and upon such prepayment in full the retail buyer <br>shall receive a refund of a portion of the finance charge computed in accordance <br>with the Rule of 78's. An acquisition cost of twenty-five dollars (&#36;25) shall be <br>deducted from the finance charge before computation of the refund. Where the <br>refund is less than one dollar (&#36;1) no refund need be made and acceleration of the <br>balance by the seller, caused by the default of the buyer or otherwise, shall not <br>affect the date of computation. Any balance remaining unpaid as of the stated <br>maturity date shall then be subject to accumulation of additional finance charges at <br>the rate specified in the contract. (2) If the finance charge applicable to the retail installment contract has or will be determined by a simple interest method, the retail buyer may pay in full at any time <br>before the stated maturity date without penalty, except that the holder may collect <br>and receive a minimum finance charge of twenty-five dollars (&#36;25) in any event. Effective: July 13, 1984 <br>History: Amended 1984 Ky. Acts ch. 391, sec. 4, effective July 13, 1984. -- Created 1956 Ky. Acts ch. 105, sec. 4, effective July 1, 1956.