Research by Keyword or Citation
(a) As found in this area:
(1) “Open-end credit plan” gets the meaning established in Regulation Z of this Federal Reserve System ( 12 C.F.R. 226.2(a)(20) ).
(2) “ Installment loan ” means any loan specified in subdivision (h) extended under an installment loan feature.
(3) “ Installment loan function ” means an element of a open-end credit plan which offers for a different subaccount regarding the open-end credit plan pursuant that the key of, and interest on, the mortgage connected with that subaccount can be repaid in considerably equal installments more than a certain period without respect to the quantity outstanding under virtually any feature of this open-end credit plan or perhaps the repayment routine according to the other function.
(b)(1) Except as otherwise given by statute, the borrower under any installment loan will be eligible to prepay the complete or any an element of the installment loan, along with any accrued interest, whenever you want.
(2) with regards to any installment loan, absolutely nothing in this area shall preclude a debtor from becoming obligated, by the contract written down, to cover a prepayment fee; but just a prepayment made within five many years of the date the installment loan is manufactured can be susceptible to a prepayment fee then entirely as herein established. A sum perhaps not surpassing 20 per cent of this initial principal amount associated with the installment loan could be prepaid in virtually any one 12-month period without incurring a prepayment fee. A prepayment fee might be imposed on any quantity prepaid in almost any 12-month duration in overabundance 20 per cent associated with initial principal level of the installment loan, which charge shall perhaps not go beyond a sum corresponding to the repayment of half a year’ advance interest on quantity prepaid more than 20 % associated with the initial principal quantity of the installment loan.