Sec.36a-570-13. Refinancing loans

A loan shall not be made to refinance a retail instalment contract or any other obligation held by an affiliated entity unless a refund credit, as required by law for prepayment in full, is first given and, in addition, one of the following conditions shall prevail:

(1) The contract being refinanced has been in existence for at least ninety days, or

(2) the amount of each instalment on the loan being made is less than the instalment on the contract being refinanced by ten per cent or five dollars, whichever is greater, or

(3) the principal amount of the loan being made exceeds the net amount owing on the obligation held by the affiliated entity by at least seventy-five dollars. A loan shall not be made where the proceeds are for the sole purpose of making payments on an obligation of any affiliated entity.

(Effective August 25, 1992; TransferredApril 24, 1995)