Iowa Code 537.3308 – Balloon payments
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Terms Used In Iowa Code 537.3308
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
- Rule: includes "regulation". See Iowa Code 4.1
537.3308 Balloon payments.
1. Except as provided in subsection 2, if any scheduled payment of a consumer credit
transaction is more than twice as large as the average of earlier scheduled payments, the consumer has the right to refinance the amount of that payment at the time it is due without penalty, as provided in § 537.2504. The terms of the refinancing shall be no less favorable to the consumer than the terms of the original transaction.
2. This section does not apply to any of the following:
a. A consumer lease.
b. A transaction pursuant to open-end credit.
c. A transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments of obligations of the consumer.
d. A transaction of a class defined by rule of the administrator as not requiring for the protection of the consumer a right to refinance as provided in this section.
e. A consumer loan in which the amount financed exceeds five thousand dollars and is secured by an interest in land.
f. A consumer rental purchase agreement.
g. A consumer loan secured by a certificate of title in a motor vehicle. [C75, 77, 79, 81, §537.3308; 82 Acts, ch 1153, §17]
87 Acts, ch 80, §43; 2001 Acts, ch 21, §1; 2018 Acts, ch 1041, §127
1. Except as provided in subsection 2, if any scheduled payment of a consumer credit
transaction is more than twice as large as the average of earlier scheduled payments, the consumer has the right to refinance the amount of that payment at the time it is due without penalty, as provided in § 537.2504. The terms of the refinancing shall be no less favorable to the consumer than the terms of the original transaction.
2. This section does not apply to any of the following:
a. A consumer lease.
b. A transaction pursuant to open-end credit.
c. A transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments of obligations of the consumer.
d. A transaction of a class defined by rule of the administrator as not requiring for the protection of the consumer a right to refinance as provided in this section.
e. A consumer loan in which the amount financed exceeds five thousand dollars and is secured by an interest in land.
f. A consumer rental purchase agreement.
g. A consumer loan secured by a certificate of title in a motor vehicle. [C75, 77, 79, 81, §537.3308; 82 Acts, ch 1153, §17]
87 Acts, ch 80, §43; 2001 Acts, ch 21, §1; 2018 Acts, ch 1041, §127