Rebate on Prepayment.
Article 138
ART. 138. Rebate on Prepayment. - Upon prepayment in full of the unpaid balance of a precomputed consumer credit transaction, refinancing or consolidation, an amount not less than the unearned portion of the finance charge calculated according to this article shall be rebated to the person to whom credit is extended. The unearned portion of the precomputed finance charge on consumer transactions repayable in substantially equal successive installments shall be equal to at least that portion of finance charge which the sums of the installment balances of the obligation scheduled to be outstanding after the installment date nearest the date of prepayment bears to the sum of all installment balances originally scheduled to be outstanding under the obligation. For the purpose of determining the installment date nearest the date of prepayment when payments are monthly, any payment made on or before the fifteenth day following an installment due date shall be deemed to have been made as of the installment due date, and if prepayment occurs after the fifteenth day, it shall be deemed to have been made on the succeeding installment due date. This method of calculating rebates may be referred to as the "Rule of 78" or "sum of the digits" method. The implementing agency may promulgate and adopt rules and regulations with respect to other precomputed consumer credit transactions.