Prohibition on Prepayment Penalties: Section 50(a)(6)(G)
Effective Jan 8, 200429 TexReg 84Source Note: The provisions of this §153.7 adopted to be effective January 8, 2004, 29 TexReg 84.Texas Secretary of State
An equity loan may be paid in advance without penalty or other charge.
(1) A lender may not charge a penalty to a borrower for paying all or a portion of an equity loan early.
(2) A lockout provision is not permitted in an equity loan agreement because it is considered a prepayment penalty.
Source Note:The provisions of this §153.7 adopted to be effective January 8, 2004, 29 TexReg 84.