UTAH CODE (Last Updated: January 16, 2015) |
Title 61. Securities Division - Real Estate Division |
Chapter 2d. Utah High Cost Home Loan Act |
§ 61-2d-103. Prepayment penalty.
Latest version.
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(2) For purposes of this section, any method of computing a refund or unearned scheduled interest is a prepayment penalty if it is less favorable to the borrower than the actuarial method. (3) Notwithstanding Subsection (1), a high-cost mortgage may not require a prepayment penalty if: (a) the high-cost mortgage is paid with the proceeds of a new loan by the same lender or an affiliate of that lender; or (b) the penalty is prohibited under other applicable law. (4) If a prepayment does not pay the full amount owed on the high-cost mortgage when the prepayment is made, the penalty shall be reduced by a percentage equal to the percentage of the balance owed before the prepayment that remains unpaid.
Enacted by Chapter 252, 2004 General Session