Refund of Unearned Finance Charges: Pre-computed Loans Only: When a pre-

Refund of Unearned Finance Charges: Pre-computed Loans Only: When a pre- computed loan is paid in full prior to maturity, whether by cash, renewal, or otherwise, the borrower is entitled to a refund of $1.00 or more of the unearned finance charges based on the Rule of 78’s. The refund shall be calculated on the number of days by which the loan is paid in advance, less twenty (20) days. 1. If the prepayment is from the proceeds of insurance, the unearned finance charge may be calculated as of the date the insurance proceeds are actually received by the Licensee. 2. If there is a charge on the loan for additional days to the first payment (i.e. first payment extension charge) the following must be taken into consideration: a. If such charge was included in the first payment and the payoff is prior to the first payment due date, the first payment extension charge shall be fully refundable; or b. If such charge was included throughout the term of the note, the first payment extension charge is refundable based on the Rule of 78’s. If a Licensee has a pre-computed loan with a term exceeding sixty-one (61) months, the Licensee is required to compute the refund based on a method that is at least as favorable to the consumer as the actuarial method. (15 U.S.C. § 1615 (b))