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TITLE 2. CREDIT SALES
CHAPTER 1. RETAIL INSTALLMENT SALES
Article 6. Payments
California Civil Code Section 1806.1-1806.4




1806.1.  Unless the buyer has notice of actual or intended
assignment of a contract or installment account, payment thereunder
made by the buyer to the last known holder of such contract or
installment account, shall to the extent of the payment, discharge
the buyer's obligation.



1806.2.  At any time after its execution, but not later than one
year after the last payment thereunder, the holder of a contract
shall, upon written request of the buyer made in good faith, promptly
give or forward to the buyer a detailed written statement which will
state with accuracy the total amount, if any, unpaid thereunder.
Such a statement shall be supplied by the holder once each year
without charge; if any additional statement is requested by the
buyer, the holder shall supply such statement to the buyer at a
charge not exceeding one dollar ($1) for each additional statement
supplied to the buyer. The provisions of this section shall apply
only to those transactions wherein, instead of periodic statements of
account, the buyer is provided with a passbook or payment book in
which all payments, credits, charges and the unpaid balance is
entered.


1806.3.  (a) Notwithstanding any provision of a contract to the
contrary, the buyer may pay at any time before maturity the entire
indebtedness evidenced by the contract without penalty.  In the event
of prepayment in full:
   (1) If the finance charge was determined on the precomputed basis,
the amount  required to repay the contract shall be the outstanding
contract balance as of that date, provided, however, that the buyer
shall be entitled to a refund credit in the amount of the unearned
portion of the finance charge.  The amount of the unearned portion of
the finance charge shall be at least as great a proportion of the
finance charge, or if the contract has been extended, deferred, or
refinanced, of the additional charge therefor, as the sum of the
periodic monthly time balances payable more than 15 days after the
date of prepayment bears to the sum of all the periodic monthly time
balances under the schedule of installments in the contract or, if
the contract has been extended, deferred or refinanced, as so
extended, deferred or refinanced.  Where the amount of the refund
credit is less than one dollar ($1), no refund credit need be made by
the holder.  Any refund credit in the amount of one dollar ($1) or
more may be made in cash or credited to the outstanding obligations
of the buyer under the contract.
   (2) If the finance charge or a portion thereof was determined on
the simple-interest basis, the amount required to prepay the contract
shall be the outstanding contract balance as of that date, including
any earned finance charges which are unpaid as of that date, and
provided further that in cases where the finance charge or a portion
thereof is determined on the 360-day basis, the payments theretofore
received will be assumed to have been received on their respective
due dates regardless of the actual dates on which  those payments
were received.
   (b) Notwithstanding any provision of a contract to the contrary,
whenever the indebtedness created by any retail installment contract
is satisfied prior to its maturity through surrender of the
collateral, repossession of the collateral, redemption of the
collateral after repossession, or any judgment, the outstanding
obligation of the buyer shall be determined as provided in
subdivision (a); provided further that the buyer's outstanding
obligation shall be computed by the holder as of the date the holder
recovers the value of the collateral through disposition thereof or
judgment is entered or, if the holder elects to keep the collateral
in satisfaction of the buyer's indebtedness, as of the date the
holder takes possession of the collateral.
   (c) This section does not preclude the collection or retention by
the holder of any delinquency charge made pursuant to Section 1803.6.



1806.4.  After the payment of all sums for which the buyer is
obligated under a contract and upon demand made by the buyer, the
holder shall deliver, or mail to the buyer at his last known address,
such one or more good and sufficient instruments as may be necessary
to acknowledge payment in full and to release all security in the
goods under such contract.

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