7 Tex. Admin. Code § 153.7

Current through Reg. 49, No. 50; December 13, 2024

Section 153.7 - Prohibition 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.

7 Tex. Admin. Code § 153.7

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