(815 ILCS 137/30)
(Text of Section before P.A. 97-849 takes effect)
Sec. 30. Prepayment penalty. For any loan that is subject to the provisions of this Act and is not subject to the provisions of the Home Ownership and Equity Protection Act of 1994, no lender shall make a high risk home loan that includes a penalty provision for payment made: (i) after the expiration of the 36-month period following the date the loan was made; or (ii) that is more than:
(1) 3% of the total loan amount if the prepayment is
made within the first 12-month period following the date the loan was made;
(2) 2% of the total loan amount if the prepayment is
made within the second 12-month period following the date the loan was made; or
(3) 1% of the total loan amount if the prepayment is
made within the third 12-month period following the date the loan was made.
(Source: P.A. 93-561, eff. 1-1-04.)
(Text of Section after P.A. 97-849 takes effect)
Sec. 30. No prepayment penalty. A high risk home loan may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal before the date on which the principal is due. For purposes of this Section, any method of computing a refund of unearned scheduled interest is a prepayment penalty if it is less favorable to the consumer than the actuarial method as that term is defined by Section 933(d) of the federal Housing and Community Development Act of 1992, 15 U.S.C. 1615(d).
(Source: P.A. 97-849, see Section 10 of P.A. 97-1159 for effective date of P.A. 97-849.)
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Last modified: February 18, 2015