31-1-113. Limitation of rule of 78ths. The sum of the monthly time balances method of computing interest or refunds on prepayment, which is also known as the rule of 78ths, may not be used in any loan agreement or retail installment contract unless the term of the loan or contract does not exceed 61 months.

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Terms Used In Montana Code 31-1-113

  • Contract: A legal written agreement that becomes binding when signed.