Guam § 2210 - Rebate Upon Prepayment.

§ 2210. Rebate Upon Prepayment.

(1) Upon prepayment in full of the unpaid balance of a precomputed

consumer credit sale or a refinancing or consolidation thereof, the

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unearned portion of the credit service charge shall be rebated to the

buyer. If the earned portion of the credit service charge is an amount less

than the amount of the minimum credit service charge (§ 2201(6)), the

seller or transferee may retain an amount equal to the minimum credit

service charge. If the required rebate is less than $1.00, no rebate need be

made.

(2) The unearned credit service charge is a fraction of the credit

service charge of which the numerator is the sum of the periodic balances

scheduled to follow the computational period in which repayment occurs,

and the denominator is the sum of all periodic balances under either the

sale agreement or, if the balance owing resulted from a refinancing

agreement (§ 2205) or a consolidation agreement (§ 2206), under the

refinancing agreement or consolidation agreement.

(3) In this section:

(a) periodic balance means the amount scheduled to be

outstanding on the last day of a computational period before

deducting the payment, if any, scheduled to be made on that day;

(b) computational period means one (1) month if one-half (1/2)

or more of the intervals between scheduled payments under the

agreement is one month or more and shall otherwise mean one (1)

week, except that the total interval prior to the due date of the first

scheduled instalment shall always be considered one computational

period.

(4) (a) If the computational period is one (1) month: (i) and the

number of days between the date of sale, refinancing or

consolidation (or any later date established under § 2201(3)) and the

due date of the first scheduled installment is less than 25 days or

more than 35 days but not more than 45 days, the unearned credit

service charge shall be increased by an adjustment for each day by

which the interval is less than 30 days and, at the option of the seller

or his transferee, may be reduced by an adjustment for each day by

which the interval is more than 30 days; the adjustment for each day

shall be one-thirtieth (1/30th) of that part of the credit service charge

earned in the computational period prior to the due date of the first

scheduled installment assuming that period to be one month; (ii) and

the interval between the date of the sale, refinancing or

consolidation and the final scheduled payment date is a number of

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full months plus an additional number of days less than a full

month, the additional number of days shall be considered a

computational period only if 16 days or more.

(b) If the computational period is one (1) week: (i) and the

number of days between the date of sale, refinancing or

consolidation (or any later date established under Subsection (3) §

2201) and the due date of the first scheduled installment is less than

five (5) days or more than nine (9) days but not more than eleven

(11) days, the unearned credit service charge shall be increased by

an adjustment for each day by which the interval is less than seven

(7) days and, at the option of the seller or his transferee, may be

reduced by an adjustment for each day by which the interval is more

than seven (7) days; the adjustment for each day shall be one-

seventh (1/7th) of that part of the credit service charge earned in the

computational period prior to the due date of the first scheduled

installment assuming that period to be one (1) month; (ii) and the

interval between the date of the sale, refinancing or consolidation

and the final scheduled payment date is a number of full weeks plus

an additional number of days less than a full week, the additional

number of days shall be considered a computational period only if

four (4) days or more.

(5) If a deferral has been agreed to pursuant to § 2204, the unearned

credit service charge shall be computed without regard to the deferment.

The amount of deferment charge earned at the date of prepayment shall

be calculated. If the deferment charge earned is less than the deferment

charge paid, the difference shall be added to the amount of the unearned

credit service charge. If any part of a deferment charge has been earned

but has not been paid, that part shall be subtracted from any rebate of

credit service charge otherwise due, or shall be added to the unpaid

balance.

(6) This Section does not preclude the collection or retention by the

seller or his transferee of delinquency charges made as authorized by §

2203.

(7) If the maturity is accelerated for any reason and judgment is

obtained, the buyer is entitled to the same rebate as though payment were

made on the date judgment is entered.

(8) If the buyer dies before the maturity of the agreement and the

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unpaid balance is paid by the proceeds of credit insurance on the life of

the buyer, the estate of the buyer is entitled to the same rebate as though

the buyer had prepaid the agreement on the date the proceeds of the

credit insurance are paid to the creditor, but no later than ten (10) days

after proof of death is furnished to the creditor.