SECTION 153.7. Prohibition on Prepayment Penalties: Section 50(a)(6)(G)

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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

                    
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