§34.23. Prepayment fees.
12 C.F.R. § 34.23
A national bank offering or purchasing ARM loans may impose fees for prepayments notwithstanding any State law limitations to the contrary. For purposes of this section, prepayments do not include:
Payments that exceed the required payment amount to avoid or reduce negative amortization; or
Principal payments, in excess of those necessary to retire the outstanding debt over the remaining loan term at the then-current interest rate, that are made in accordance with rules governing the determination of monthly payments contained in the loan documents.
Notes, amendments, and revision history
Source
Source: 61 FR 11301, Mar. 20, 1996, unless otherwise noted.
Authority
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., 5412(b)(2)(B) and 15 U.S.C. 1639h.