---
kind: "section"
citation: "24 C.F.R. § 891.700"
title: "24"
number: "891.700"
heading: "Prepayment of loans."
url: "https://uscodex.org/cfr/24/891.700"
---

# §891.700. Prepayment of loans.

- (a) **Prepayment prohibition.** The prepayment (whether in whole or in part) or the assignment or transfer of physical and financial assets of any [Section 202](/cfr/24/202.md) project is prohibited, unless the Assistant Secretary gives prior written approval.
- (b) **HUD-approved prepayment.** Approval for prepayment or transfer will not be granted unless HUD determines that the prepayment or transfer of the loan is a part of a transaction that will ensure the continued operation of the project until the original maturity date of the loan in a manner that will provide rental housing for the handicapped families on terms at least as advantageous to existing and future tenants as the terms required by the original [Section 202](/cfr/24/202.md) loan agreement and any other loan agreements entered into under other provisions of law.

## Notes

### Authority

Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.

### Source

Source: 61 FR 11956, Mar. 22, 1996, unless otherwise noted.