State Codes and Statutes
Statutes > Virginia > Title-6-1 > Chapter-7-3 > 6-1-330-81§ 6.1-330.81. (Repealed effective October 1, 2010) Certain contracts topermit prepayment; amount of prepayment penalty.
A. Every loan contract, except as provided in subsection C of this section,secured by a first deed of trust or first mortgage on real estate, where theprincipal amount of the loan is less than $75,000, shall permit theprepayment of the unpaid principal at any time and no penalty in excess ofone percent of the unpaid principal balance shall be allowed.
B. Any prepayment penalty provision in violation of this section shall beunenforceable as to the amount in excess of one percent of such balance.
C. The provisions of this section shall not apply to secured or unsecurednotes evidencing installment sales contracts. The provisions of this sectionrelating to prepayment penalty shall not apply to loan contracts subject to §6.1-330.83 or § 6.1-330.84 or to loan contracts governmentally regulated asto prepayment privilege.
(1987, c. 622.)
