Code of Massachusetts Regulations
955 CMR - INSURANCE PREMIUM FINANCE AGENCY
Title 955 CMR 2.00 - The Financing Of Insurance Premiums
Section 2.03 - Precomputation

When an agreement requires repayment in substantially equal and consecutive monthly installments of principal and interest, the interest charge may be precomputed on scheduled monthly principal balances at a rate not inexcess of that established by this Board. Such precomputed interest shall be applied to the unpaid balance of the agreement until it is fully paid. For the purpose of computation, whether at the maximum rate or less, a month shall be that period of time from any date in a month to the corresponding date in the next month or, if there is no such corresponding date, to the last day of the next month. A day shall be considered one-thirtieth of a month when computation is made for a fraction of a month.