Section 2-504 - Finance charge on refinancingWith 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: [1989, c. 457, §2(RPR); 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 [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 [1987, c. 129, §48(NEW).] [1987, c. 129, §48(RPR).]
2. Appropriate additional charges, section 2-501, payment of which is deferred. [1987, c. 129, §48(RPR).]
1973, c. 762, § 1 (NEW) . 1975, c. 173, § 2 (AMD) . 1979, c. 660, §§7,8 (AMD) . 1981, c. 235, § 3 (AMD) . 1983, c. 77, (AMD) . 1985, c. 316, § 1 (AMD) . 1985, c. 819, §A12 (AMD) . 1987, c. 129, §§49,50 (RPR) . 1987, c. 129, § 48 (RPR) . 1989, c. 457, §§2,8,9 (AMD) . 1989, c. 600, §§B7,8 (AMD) .