N.Y. Personal Property Law Section 305
Credit upon anticipation of payments


Notwithstanding the provisions of any retail instalment contract to the contrary, any buyer may pay it in full at any time before the maturity of the final instalment of the time balance thereof and if he does so shall receive and be entitled to receive a refund credit thereon and if the contract included an amount for group credit life insurance, the further refund credit thereon for such anticipation, whether or not the maturity of the time balance of the contract was accelerated by the holder by reason of the buyer’s default or otherwise. The amount of any such refund credit shall be the unearned portion of the credit service charge, after first deducting an acquisition cost of fifteen dollars, or, if the contract has been extended, deferred or refinanced, the additional charge therefor, determined according to a generally accepted actuarial method. Where the amount of the credit for anticipation of payment is less than one dollar, no refund need be made. If the credit service charge imposed on the retail instalment contract is computed pursuant to subdivision four of § 303 (Credit service charge limitation)section three hundred three of this article the contract may, after deduction of the acquisition cost of fifteen dollars, be prepaid in full without penalty.


The amount of the further refund credit for group credit life insurance shall be equal to the excess of the amount included in the contract for group credit life insurance over the premiums paid or payable by the holder of the contract for such insurance, if such premiums were paid or payable periodically, or the refund for unearned group credit life insurance premium received or receivable by the holder of the contract, if such premium was paid or payable in a lump sum, provided that no such further refund credit need be made if the amount thereof would be less than one dollar.


In the event (i) the maturity of the contract is accelerated due to the default of the buyer or otherwise and judgment is obtained, or


repayment is made pursuant to group credit life insurance, the buyer or his legal representative, as the case may be, shall be entitled to the same refund credits as if the contract had been prepaid in full on the date of acceleration or repayment.

Source: Section 305 — Credit upon anticipation of payments, https://www.­nysenate.­gov/legislation/laws/PEP/305 (updated Sep. 22, 2014; accessed Jun. 15, 2024).

Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 305’s source at nysenate​.gov

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