Georgia Code
Article 2 - Operating Procedures
§ 7-3-14. Payment Before Maturity; Refund of Prepaid Interest; Continuing Insurance

Notwithstanding the provisions of any contract to the contrary, a borrower may at any time prepay all or any part of the unpaid balance to become payable under any installment loan. If the borrower prepays the loan in full before maturity, the licensee shall refund to the borrower a portion of the prepaid interest, calculated in complete even months (odd days omitted), as follows: the amount of the refund shall represent at least as great a proportion of the total interest as the sum of the periodical time balance after the date of prepayment bears to the sum of all periodical time balances under the schedule of payments in the original contract. Where the amount of the refund due to anticipation of payment is less than $1.00, no refund need be made. If the borrower has been required to purchase insurance coverage other than insurance coverage in a blanket policy when the borrower has paid no acquisition cost, the borrower shall have the option to continue such insurance in force for the balance of the policy period, with all rights transferred to the borrower or his or her assigns, in which event no refund of insurance premiums shall be made.
History. Ga. L. 1955, p. 431, § 17; Code 1981, § 7-3-17 ; Code 1981, § 7-3-14 , as redesignated by Ga. L. 2020, p. 156, § 2/SB 462.
The 2020 amendment, effective June 30, 2020, redesignated former Code Section 7-3-17 as present Code Section 7-3-14, and in the first sentence, substituted “loan” for “contract”; in the second sentence, substituted “prepays the loan” for “pays the time balance”, “the borrower” for “him”, and “the amount” for “The amount”; and, in the fourth sentence, inserted “insurance coverage”, substituted “the borrower” for “he” twice, substituted “his or her” for “his”, and deleted “to him” following “made” at the end. See Editor’s notes at the beginning of this chapter for applicability.
Editor’s notes.
Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020, redesignated former Code Section 7-3-14 as present Code Section 7-3-11.
Law reviews.
For article discussing methods of computation of finance charges in Georgia consumer credit contracts, see 30 Mercer L. Rev. 281 (1978).

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