---
kind: "section"
citation: "7 C.F.R. § 1714.9"
title: "7"
number: "1714.9"
heading: "Prepayment of insured loans."
url: "https://uscodex.org/cfr/7/1714.9"
---

# §1714.9. Prepayment of insured loans.


This section sets out provisions for prepayment of insured electric loans at face value. Provisions for discounted prepayment of RUS loans are set out in [7 CFR part 1786](/cfr/7/part1786.md).

- (a) **Municipal rate loans.** Loan documents for municipal rate loans shall provide for the following:
  - (1) **Prepayment on a rollover maturity date.** All, or a portion of, the outstanding balance on any advance from a municipal rate loan may be prepaid on any rollover maturity date pursuant to [§ 1714.6(a)(4)](/cfr/7/1714.6.md?p=a-4).
  - (2) **Prepayment on a date other than a rollover maturity date.** A borrower may elect at the time of loan approval to include a prepayment option (call provision) that will allow the borrower to prepay all, or a portion of, the outstanding balance on any advance on a date other than a rollover maturity date. Interest rates on advances from loans with a prepayment provision will be increased as set forth in [§ 1714.4(a)](/cfr/7/1714.4.md?p=a).
- (b) **Hardship rate loans.** Loan documents for hardship loans shall provide that the loan may be prepaid at face value at any time without penalty.

## Notes

### Authority

Authority: 7 U.S.C. 901 et seq.; 1921 et seq.; and 6941 et seq.

### Source

Source: 58 FR 66260, Dec. 20, 1993, unless otherwise noted.