Skip to main content
Find a Lawyer

Utah Code Title 61. Securities Division--Real Estate Division § 61-2d-103. Prepayment penalty

Current as of January 01, 2025 | Updated by Findlaw Staff

(1) The terms of a high-cost mortgage loan may contain terms under which a borrower must pay a penalty for prepayment.

(a) However, a penalty for prepayment cannot be assessed more than 36 months after the loan was originally made.

(b) The amount of the penalty may not exceed the total amount of interest paid at 80% of the immediately preceding six scheduled payments.

(2) For purposes of this section, any method of computing a refund or unearned scheduled interest is a prepayment penalty if it is less favorable to the borrower than the actuarial method.

(3) Notwithstanding Subsection (1), a high-cost mortgage may not require a prepayment penalty if:

(a) the high-cost mortgage is paid with the proceeds of a new loan by the same lender or an affiliate of that lender; or

(b) the penalty is prohibited under other applicable law.

(4) If a prepayment does not pay the full amount owed on the high-cost mortgage when the prepayment is made, the penalty shall be reduced by a percentage equal to the percentage of the balance owed before the prepayment that remains unpaid.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Utah Code Title 61. Securities Division--Real Estate Division § 61-2d-103. Prepayment penalty - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-61-securities-division-real-estate-division/ut-code-sect-61-2d-103/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard