HARRY HUGHES, Governor                                      1751

(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.

(3)  The amount of the refund shall be calculated
according to the "Rule of 78"; that is, the refund shall
represent at least as great a proportion of the total finance
charge as the sum of the periodic time balances after the date of
prepayment bears to the sum of all periodic time balances under
the schedule of payments in the original agreement.

(4)  If a prepayment is made, the holder is entitled
to retain a finance charge of at least $6. If the amount of
credit for prepayment is less than $1, no refund need be made.

(f) (1) The holder of a closed end account the finance
charge is computed in advance may:

(i) By agreement with the buyer, extend the
scheduled due date or defer the scheduled payment of all or part
of the installments payable under it; and

(ii) Charge the buyer an extension or deferral
charge.

(2)  The extension or deferral charge may not exceed
an amount equal to 1 percent per month of the amount extended or
deferred for the period of extension or deferral.

(3)  The period of extension or deferral may not
exceed the period from the date when the extended or deferred
amount would have been payable in the absence of the extension or
deferral to the date when the amount is made payable under the
agreement of extension or deferral.

12-506.

(a) In an open end account, the finance charge may not be
more than:

(1) 1.5 percent a month on that part of the
outstanding balance not exceeding $700;

(2) 1 percent per month on that part of the
outstanding balance exceeding $700;

(3) Notwithstanding the provisions of paragraph
(a)(1) and (2), the finance charge may not exceed 2 percent per
month on that part of the outstanding balance originating on or
after July 1, 1982 [and before July 1, 1985].