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Pennsylvania Statutes Title 12 Pa.C.S.A. Commerce and Trade § 6313. Prepayment of obligation

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Right to prepay.--Notwithstanding the provisions of a closed-end credit agreement or an open-end credit agreement, a buyer may prepay without additional charge at any time all or part of the time balance under the agreement.

(b) Refund credit.--

(1) Pursuant to a closed-end credit agreement and subject to this chapter, the seller or holder may accelerate the balance due on the agreement but shall provide a refund credit calculated as of the date of the acceleration if:

(i) the finance charges had been computed and added to the unpaid balance at the time the agreement was entered into; and

(ii) the entire time balance under the agreement is prepaid prior to maturity.

(2) The amount of the refund credit shall be computed by the actuarial method.

(3) If the amount of the refund credit is less than $1, a refund does not need to be made.

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Cite this article: FindLaw.com - Pennsylvania Statutes Title 12 Pa.C.S.A. Commerce and Trade § 6313. Prepayment of obligation - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-12-pacsa-commerce-and-trade/pa-csa-sect-12-6313/

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