§ 305. Credit upon anticipation of payments. 1. 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 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.

2. 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.

3. 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 (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.