§ 306. Refinancing. 1. The holder of a retail instalment contract may,
upon agreement with the buyer, extend the scheduled due date or defer
the scheduled payment of all or any part of any instalment or
instalments payable thereunder. The agreement for such extension or
deferment must be in writing and signed by the parties thereto. The
holder may charge and contract for the payment of an extension or
deferred charge by the buyer and collect and receive the same, at the
rate or rates agreed to by the holder and the buyer on the amount of the
instalment or instalments, or part thereof, extended or deferred for the
period of extension or deferral. Such period shall not exceed the period
from the date when such extended or deferred instalment or instalments,
or part thereof, would have been payable in the absence of such
extension or deferral, to the date when such instalment or instalments,
or part thereof, are made payable under the agreement of extension or
deferment; except that a minimum charge of one dollar for the period of
extension or deferral may be made in any case where the extension or
deferral charge, when computed at such rate or rates, amounts to less
than one dollar. Such agreement may also provide for the payment by the
buyer of the additional cost to the holder of the contract of premiums
for continuing in force, until the end of such period of extension or
deferral, any insurance coverages provided for in the contract, subject
to the provisions of subdivision six of section three hundred two.

2. The holder of a retail instalment contract may, upon agreement in
writing with the buyer, refinance the payment of the unpaid time balance
of the contract by providing for a new schedule of instalment payments.
The holder may charge and contract for the payment of a refinance charge
by the buyer at the rate or rates agreed to by the holder and the buyer
and collect and receive the same, but such refinance charge shall be
based upon the amount refinanced, plus any additional cost of insurance
and of official fees incident to such refinancing and any accrued
collection and delinquency charges, after the deduction of a refund
credit in an amount equal to that to which the buyer would have been
entitled under section three hundred five of this chapter if he had
prepaid in full his obligations under the contract but, in computing
such refund credit, there shall not be allowed such an amount as will
bring the earned credit service charge up to fifteen dollars. Such
agreement for refinancing may also provide for the payment by the buyer
of the additional cost to the holder of the contract of premiums for
continuing in force, until the maturity of the contract as refinanced,
any insurance coverages provided for therein, subject to the provisions
of subdivision six of section three hundred two. The refinancing
agreement shall set forth all items required to be disclosed by the act
of congress entitled "Truth in Lending Act" and the regulations
thereunder, as such act and regulations may from time to time be
amended.