New Jersey § 17:9a-59
Full text of New Jersey New Jersey Statutes § 17:9a-59, with citation guidance and answers to common questions.
§ 17:9a-59.
(a) When the unpaid balance owing on a precomputed small business loan is repaid in
full, or when the maturity of the unpaid balance of such loan is accelerated before
the date scheduled for the payment of the final installment, the bank shall allow
a credit on account of the precomputed interest charge made on such loan, the amount
of which shall not be less than the amount determined by the application of the formula
C = AN / D (“the rule of 78's”) in which “C” represents the amount of the credit to
be given; “A” represents the amount of the precomputed interest charge; and “D”
is determined by ascribing to each month included in the period for which the precomputed
interest charge was computed, reckoning from the day upon which the loan was made,
the cardinal number descriptive of the number of months scheduled, by the terms of
the loan, to elapse from the beginning of each such month, to the date to which the
precomputed interest charge was computed, 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 months
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. (b) The Commissioner of Banking may prepare and distribute to such banks as shall
make a request therefor, a schedule or schedules based upon the formula stated in
subsection (a) of this section, and credits allowed as provided in such schedule shall
constitute a complete compliance with such subsection. A copy of such schedule, duly certified by the commissioner, shall be evidence in
all courts and places. (c) This section shall not apply where the amount of the credit to be allowed is less
than $5.00. (d) The unpaid balance owing on a nonprecomputed small business loan may be repaid
in full at any time without penalty.
Frequently Asked Questions About New Jersey § 17:9a-59
What does New Jersey Statutes § 17:9a-59 cover?
Section 17:9a-59 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 17:9a-59?
A common citation format is "New Jersey Statutes § 17:9a-59" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 17:9a-59 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.