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TITLE 7BANKING AND SECURITIES
PART 8JOINT FINANCIAL REGULATORY AGENCIES
CHAPTER 153HOME EQUITY LENDING
RULE §153.7Prohibition on Prepayment Penalties: Section 50(a)(6)(G)

An equity loan may be paid in advance without penalty or other charge.

  (1) A lender may not charge a penalty to a borrower for paying all or a portion of an equity loan early.

  (2) A lockout provision is not permitted in an equity loan agreement because it is considered a prepayment penalty.


Source Note: The provisions of this §153.7 adopted to be effective January 8, 2004, 29 TexReg 84

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