Sec. 205. Credit Service Charge on Refinancing — With respect to a consumer credit sale, refinancing, or consolidation, the seller may by agreement with the buyer refinance the unpaid balance and may contract for and receive a credit service charge based on the amount financed resulting from the refinancing at a rate not exceeding that permitted by the provisions on credit service charge for consumer credit sales (IC 24-4.5-2-201). For the purpose of determining the credit service charge permitted, the amount financed resulting from the refinancing comprises the following:
(a) If:
(i) the transaction was not precomputed, the total of the unpaid balance and accrued charges on the date of refinancing; or
(ii) the transaction was precomputed, in the case of a transaction entered into before July 1, 2020, the amount which the buyer would have been required to pay upon prepayment pursuant to the provisions on rebate upon prepayment (IC 24-4.5-2-210) on the date of refinancing.
(b) Appropriate additional charges (IC 24-4.5-2-202), payment of which is deferred.