Loan Finance Charge - Refinancing

With respect to a precomputed consumer loan, the lender may by agreement with the debtor refinance the unpaid balance and may contract for and receive a loan finance charge based on the principal resulting from the refinancing at a rate not in excess of that permitted by the provisions on loan finance charge for consumer loans (§ 3201) or the provisions on loan finance charge for regulated loans (§ 3508), whichever is appropriate. For the purpose of determining the loan COL120106 CH. 3 LOANS finance charge permitted, the principal resulting from the refinancing comprises the following:

(1)The amount which the debtor would have been required to repay upon a prepayment pursuant to the provisions on rebate upon prepayment (§ 3210) on the date of refinancing, except that for the purpose of computing this amount the minimum retained loan finance charge pursuant to § 3210(1) shall not be included; [and]

(2)The appropriate additional charges made pursuant to § 3202 but not paid in cash by the debtor.