§ 409. Refinancing. 1. The holder of a retail instalment contract or
obligation or note may, upon agreement with the buyer, extend the
scheduled due date or defer the scheduled payment of all or of 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 deferral charge by the buyer and collect and receive the
same, at the rate or rates agreed to by 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,
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 or obligation or note of premiums for continuing in force,
until the end of such period of extension or deferral, any insurance
coverages provided for in the contract or obligation, subject to the
provisions of subdivision five of section four hundred two.

2. The holder of a retail instalment contract or obligation or note
may, upon agreement in writing with the buyer, refinance the payment of
the unpaid time balance of the contract or obligation or note 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
and collect and receive the same, but such refinance charge (1) shall be
based upon the amount refinanced, plus any additional cost of insurance
and of official fees incident to such refinancing, after the deduction
of a refund credit in an amount equal to that to which the buyer would
have been entitled under section four hundred eight if he had prepaid in
full his obligations under the contract or obligation or note, but in
computing such refund credit there shall not be allowed the minimum
earned credit service charge as authorized by such section, and (2) may
not exceed the rate of credit service charge provided under section four
hundred four of this chapter. Such agreement for refinancing may also
provide for the payment by the buyer of the additional cost to the
holder of the contract or obligation or note of premiums for continuing
in force, until the maturity of the contract or obligation or note as
refinanced, any insurance coverages provided for therein, subject to the
provisions of subdivision five of section four hundred two of this
chapter. 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.