---
kind: "section"
citation: "7 C.F.R. § 3560.652"
title: "7"
number: "3560.652"
heading: "Prepayment and restrictive-use categories."
url: "https://uscodex.org/cfr/7/3560.652"
---

# §3560.652. Prepayment and restrictive-use categories.

- (a) **Loans with prepayment prohibitions include—**
  - (1) Initial [section 515](/cfr/7/515.md) loans made on or after December 15, 1989, and
  - (2) **Subsequent loans made on or after December 15, 1989, for additional rental units.**
- (b) **Loans without prepayment prohibitions but with restrictive-use provisions include—**
  - (1) All loans made after December 21, 1979, but prior to December 15, 1989;
  - (2) Subsequent loans made on or after December 15, 1989, for purposes other than additional rental units; or
  - (3) **Loans subsequently restricted by servicing actions including transfers.**
- (c) Loans without prepayment prohibitions or restrictive-use provisions include all loans made on or before December 21, 1979 or loans that had restrictive-use provisions that have expired. Such loans are eligible to receive incentives subject to the provisions of this subpart.
- (d) Loans may be prepaid if another loan or grant from the Agency imposes the same or more stringent restrictive-use provisions on the housing project covered by the loan being prepaid.

## Notes

### Authority

Authority: 42 U.S.C. 1480.

### Source

Source: 69 FR 69106, Nov. 26, 2004, unless otherwise noted.