28-43-307. BALLOON PAYMENTS. (1) Except as provided in subsection (2) of this section, if any scheduled payment of a regulated consumer credit transaction is more than twice as large as the average of earlier scheduled payments, the debtor has the right to refinance, without penalty, the amount of that payment at the time it is due. The terms of the refinancing shall be no less favorable to the debtor than the terms of the original transaction.
(2) This section does not apply to:
(a) A transaction pursuant to open-end credit;
(b) A transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the debtor;
(c) A transaction of a class defined by rule of the administrator as not requiring for the protection of the debtor his right to refinance as provided in this section; or
(d) A transaction secured by a second deed of trust or mortgage on a one (1) to four (4) family dwelling occupied by the debtor.
History:
[28-43-307, added 1983, ch. 119, sec. 3, p. 284.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 43 - REGULATION OF AGREEMENTS AND PRACTICES
Part 3 - LIMITATIONS ON AGREEMENTS AND PRACTICES IN REGULATED CONSUMER CREDIT TRANSACTIONS
Section 28-43-301 - SECURITY IN SALES.
Section 28-43-302 - CROSS-COLLATERAL.
Section 28-43-303 - DEBT SECURED BY CROSS-COLLATERAL.
Section 28-43-304 - NO ASSIGNMENT OF EARNINGS.
Section 28-43-305 - AUTHORIZATION TO CONFESS JUDGMENT PROHIBITED.
Section 28-43-306 - CERTAIN NEGOTIABLE INSTRUMENTS PROHIBITED.
Section 28-43-307 - BALLOON PAYMENTS.
Section 28-43-308 - REFERRAL SALES.
Section 28-43-309 - RESTRICTIONS ON INTEREST IN LAND AS SECURITY.
Section 28-43-310 - REGULAR SCHEDULE OF PAYMENTS — MAXIMUM LOAN TERM.