New York Consolidated Laws, Personal Property Law - PEP § 408. Credit upon anticipation of payments

1. Notwithstanding the provisions of any contract or obligation 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 or obligation included an amount for group credit life insurance a 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.

2. The amount of any such refund credit shall be determined according to a generally acceptable actuarial method.

If the credit service charge imposed on the retail instalment contract or obligation is computed pursuant to subdivision four of section four hundred four of this article, the contract or obligation may be prepaid in full without penalty.

3. Where the amount of the credit for anticipation of payment is less than one dollar no refund need be made.  Where the earned credit service charge amounts to less, there may be retained an amount equal to the minimum credit service charge applicable.

4. 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 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.

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