§ 6.1-330.84. Prepayment by borrower from industrial loan association; rebates for unearned interest; prepayment ...
Any natural person borrowing from an industrial loan association shall have the right to anticipate payment of his debt at any time. In cases where interest has been added to the face amount of the note, such person shall have the right to receive a rebate by way of credit for any unearned interest, which rebate shall be computed in accordance with the Rule of 78 as illustrated in § 6.1-330.86 or by using any other method that is at least as favorable to such borrower on loans (i) with an initial maturity and corresponding amortization period of sixty-one months or less and (ii) payable in equal periodic installments, and on other loans under a method at least as favorable to the borrower as the actuarial method. In addition, the industrial loan association may charge a prepayment penalty not to exceed two percent of the amount of the prepayment, provided such prepayment penalty, including the percent thereof, is set forth in the contract of indebtedness and is disclosed to the borrower pursuant to the federal interest disclosure laws.
(1987, c. 622; 1990, c. 338; 1991, c. 171.)
Sections: Previous 6.1-330.78 6.1-330.78:1 6.1-330.79 6.1-330.80 6.1-330.81 6.1-330.82 6.1-330.83 6.1-330.84 6.1-330.85 6.1-330.85:1 6.1-330.86 6.1-330.86:1 6.1-330.87 6.1-330.88 6.1-330.89 NextLast modified: April 16, 2009