New Jersey § 17:12b-163

§ 17:12b-163.

When the unpaid balance owing upon a loan as defined in section 158 of P.L.1963, c.

144 ( C. 17:12B-158 ) is repaid in full or the maturity of the unpaid loan is accelerated before the date

scheduled for the payment of the final installment, the association shall allow a

credit on account of the precomputed interest, the amount of which shall not be less

than the amount determined by the application of the formula “C” represents the amount of the credit to be given; “A” represents the amount of

precomputed interest; “D” is determined by ascribing to each payment period included

in the period for which interest was precomputed, reckoning from the day upon which

the loan was made, the cardinal number descriptive of the number of payment periods

scheduled, by the terms of the loan, to elapse from the beginning of each such payment

period, to the date to which interest was precomputed, and the total of all the cardinal

numbers so ascribed constitutes the quantity “D”; and “N” represents the difference

between the quantity “D” and the total of all the cardinal numbers ascribed to the

payment periods which have elapsed, in whole or in part, from the making of the loan,

to the day upon which such repayment is made, or to the day upon which the maturity

of the unpaid balance of such loan is accelerated, as the case may be. The commissioner may prepare and distribute to such associations as shall make a request

therefor, a schedule or schedules based upon the formula specified in this section

for use in determining the credit to be allowed pursuant to this section, and allowance

of interest made as provided in such schedule shall constitute a complete compliance

with this section. A copy of such schedule, duly certified by the commissioner, shall be evidenced

in all courts and places. This section shall not apply where the amount of the credit to be allowed is less

than $1.00. The unpaid balance of a nonprecomputed loan may be paid in whole or in part at any

time. If an association knowingly violates any provision of sections 159 through 164 of

this act ( C. 17:12B-159 through C. 17:12B-164 ), the association shall forfeit the entire interest which the note or other evidence

of debt carries with it, or which has been agreed to be paid thereon, and the borrower,

or his legal representatives, may recover back, in an action against the association,

twice the amount of interest received by the association on such loan, provided such

action is commenced within 2 years from the date such violation occurred. The amount of any interest credit allowed pursuant to section 163 of this act, shall

not be deemed to be interest received by the association for the purposes of this

section.