§ 6.2-1409. (Effective October 1, 2010) Prepayment by borrower fromassociation; rebates for unearned interest; prepayment penalty.
A. Any individual borrowing from an association shall have the right toanticipate payment of his debt at any time.
B. If interest has been added to the face amount of the note, the borrowershall have the right, upon prepayment of the debt, to receive a rebate by wayof credit for any unearned interest. The rebate shall be computed:
1. On loans (i) with an initial maturity and corresponding amortizationperiod of 61 months or less and (ii) payable in equal periodic installments,in accordance with the Rule of 78 as illustrated in § 6.2-403 or by using anyother method that is at least as favorable to such borrower; and
2. On other loans, under a method at least as favorable to the borrower asthe actuarial method.
C. An association may charge a prepayment penalty not to exceed two percentof the amount of the prepayment, provided such prepayment penalty, includingthe percent thereof, is set forth in the contract of indebtedness and isdisclosed to the borrower pursuant to applicable federal interest disclosurelaws.
(1987, c. 622; , § 6.1-330.84; 1990, c. 338; 1991, c. 171; 2010, c. 794.)
§ 6.2-1409. (Effective October 1, 2010) Prepayment by borrower fromassociation; rebates for unearned interest; prepayment penalty.
A. Any individual borrowing from an association shall have the right toanticipate payment of his debt at any time.
B. If interest has been added to the face amount of the note, the borrowershall have the right, upon prepayment of the debt, to receive a rebate by wayof credit for any unearned interest. The rebate shall be computed:
1. On loans (i) with an initial maturity and corresponding amortizationperiod of 61 months or less and (ii) payable in equal periodic installments,in accordance with the Rule of 78 as illustrated in § 6.2-403 or by using anyother method that is at least as favorable to such borrower; and
2. On other loans, under a method at least as favorable to the borrower asthe actuarial method.
C. An association may charge a prepayment penalty not to exceed two percentof the amount of the prepayment, provided such prepayment penalty, includingthe percent thereof, is set forth in the contract of indebtedness and isdisclosed to the borrower pursuant to applicable federal interest disclosurelaws.
(1987, c. 622; , § 6.1-330.84; 1990, c. 338; 1991, c. 171; 2010, c. 794.)
§ 6.2-1409. (Effective October 1, 2010) Prepayment by borrower fromassociation; rebates for unearned interest; prepayment penalty.
A. Any individual borrowing from an association shall have the right toanticipate payment of his debt at any time.
B. If interest has been added to the face amount of the note, the borrowershall have the right, upon prepayment of the debt, to receive a rebate by wayof credit for any unearned interest. The rebate shall be computed:
1. On loans (i) with an initial maturity and corresponding amortizationperiod of 61 months or less and (ii) payable in equal periodic installments,in accordance with the Rule of 78 as illustrated in § 6.2-403 or by using anyother method that is at least as favorable to such borrower; and
2. On other loans, under a method at least as favorable to the borrower asthe actuarial method.
C. An association may charge a prepayment penalty not to exceed two percentof the amount of the prepayment, provided such prepayment penalty, includingthe percent thereof, is set forth in the contract of indebtedness and isdisclosed to the borrower pursuant to applicable federal interest disclosurelaws.
(1987, c. 622; , § 6.1-330.84; 1990, c. 338; 1991, c. 171; 2010, c. 794.)
