MARVIN MANDEL, Governor

459

(B)   COMPUTATION OF FINANCE CHARGE.

(1)   IN A CLOSED END ACCOUNT, NOTWITHSTANDING
THE FACT THAT THE UNPAID PRINCIPAL BALANCE IS PAYABLE IN
INSTALLMENTS, THE FINANCE CHARGE SHALL BE COMPUTED ON THE
PRINCIPAL BALANCE DUE IN CONNECTION WITH EACH PURCHASE
FROM THE DATE OF THE PURCHASE, EXCEPT AS PROVIDED IN
§12-504(B) WITH RESPECT TO GOODS OR SERVICES IN EXCESS OF
$200, UNTIL THE DUE DATE OF THE FINAL INSTALLMENT.

(2)   THE AMOUNT OF THE MAXIMUM FINANCE CHARGE
PERMITTED BY THIS SECTION SHALL BE DECREASED OR INCREASED
PROPORTIONATELY IF THE PRINCIPAL BALANCE DUE IN
CONNECTION WITH A PURCHASE UNDER A CLOSED END ACCOUNT IS
PAYABLE IN SUCCESSIVE INSTALLMENTS SUBSTANTIALLY EQUAL IN
AMOUNT:

(i) FOR A PERIOD OTHER THAN A YEAR; OR

(ii) FOR AMOUNTS OTHER THAN $100.

(3)    IF A CLOSED END ACCOUNT PROVIDES FOR
EITHER UNEQUAL OR IRREGULAR INSTALLMENT PAYMENTS, THE
FINANCE CHARGE MAY BE AT A RATE WHICH WILL PROVIDE THE
SAME YIELD AS IS PERMITTED UNDER THIS SECTION FOR
ACCOUNTS WHICH PROVIDE FOR EQUAL AND REGULAR INSTALLMENT
PAYMENTS.

(C)       PERIODIC INSTALLMENTS.

AMOUNTS DUE UNDER A CLOSED END ACCOUNT MAY BE
PAYABLE IN SUCCESSIVE MONTHLY, SEMIMONTHLY, OR WEEKLY
INSTALLMENTS.

(D)      FRACTIONAL PERIOD.

AS PART OF THE REGULAR PRACTICE OF A [[SELLER]]
HOLDER , HE MAY INCLUDE FRACTIONAL PERIODS OF 15 DAYS OR
MORE IS A WHOLE MONTH IF HE ALSO ENTIRELY EXCLUDES
FRACTIONAL PERIODS OF 14 DAYS OR LESS.

(E)         PREPAYMENT OF BALANCE AND REFUND OF FINANCE
CHARGE.

(1)       A BUYER MAY PREPAY AT ANY TIME, WITHOUT
PENALTY, ALL OR ANY PART OF THE OUTSTANDING BALANCE OF A
CLOSED END ACCOUNT.

(2)       EXCEPT AS PROVIDED IN PARAGRAPH (4) OF
THIS SUBSECTION, IF THE BUYER PAYS THE BALANCE IN FULL
BEFORE MATURITY, THE HOLDER IMMEDIATELY SHALL REFUND TO
HIM A PORTION OF THE FINANCE CHARGE, INCLUDING THE CHARGE
PROVIDED IN SUBSECTION (A)(2) OF THIS SECTION.