§2-504. Finance charge on refinancing
241 words·~1 min read·
/me/title-9-a-maine-consumer-credit-code/2-504·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
With respect to a consumer credit transaction, except a consumer lease, the creditor by agreement with the consumer may refinance the unpaid balance and contract for and receive a finance charge based on the amount financed resulting from the refinancing at a rate not exceeding that permitted by the provisions on finance charge for consumer credit sales other than open-end credit, section 2‑201 , if a consumer credit sale is refinanced, or for consumer loans, section 2‑401 , if a consumer loan is refinanced.
For the purpose of determining the finance charge permitted, the amount financed resulting from the refinancing is composed of the following: [PL 1989, c. 457, §2 (RPR); PL 1989, c. 600, Pt. B, §§7, 8 (AFF).]
1. An amount equal to:
A. If the transaction was not precomputed, the total of the unpaid balance and the accrued charges, with the exception of any minimum charge, on the date of the refinancing; or [PL 1987, c. 129, §48 (NEW).]
B. If the transaction was precomputed, the amount which the consumer would have been required to pay upon prepayment pursuant to the provision on rebate upon prepayment, section 2‑510 , on the date of refinancing, but for the purpose of computing this amount no minimum charge is permitted; and [PL 1987, c. 129, §48 (NEW).]
[PL 1987, c. 129, §48 (RPR).]
2. Appropriate additional charges, section 2‑501 , payment of which is deferred.
[PL 1987, c. 129, §48 (RPR).]