Arkansas Code
Subchapter 2 - Powers and Duties of Financial Institutions Generally
§ 23-32-203. Loans secured by liens on agricultural lands

(a) Any person obtaining a loan secured by a lien on real estate in this state which is used primarily for agricultural or livestock purposes shall have the privilege of prepaying the loan in multiples of one hundred dollars ($100) during any one (1) year following the first anniversary date of the loan, on interest-paying dates, provided the prepayment plus required payments does not exceed twenty percent (20%) of the initial principal amount of the loan.
(b) The privilege shall not be cumulative, and the borrower shall have no further prepayment privilege except that the borrower may, at any time, prepay the principal balance of the loan with accrued interest thereon plus prepayment fees in amounts not exceeding the following:
(1) Five percent (5%) of the unpaid principal balance if prepaid during the first year;
(2) Four percent (4%) of the unpaid principal balance if prepaid during the second year;
(3) Three percent (3%) of the unpaid principal balance if prepaid during the third year;
(4) Two percent (2%) of the unpaid principal balance if prepaid during the fourth year;
(5) One percent (1%) of the unpaid principal balance if prepaid during the fifth year; and
(6) No penalty if prepaid more than five (5) years after the date of the note creating the debt.

(c)
(1) This section shall apply only to loans secured by a lien on real estate used primarily for agricultural or livestock purposes.
(2) This section shall not apply to any mortgage, deed of trust, note, or other instrument evidencing indebtedness if the instrument contains a statement in boldface type that this section does not apply and if the lender or agent of the lender points out and explains the provisions to the borrower and the borrower signs a statement on the instrument that the section has been explained and that the borrower agrees.

(d) Any lender or other person applying or attempting to apply more restrictive prepayment requirements, or otherwise violating this section, shall be guilty of a Class A misdemeanor and shall be punished accordingly.
(e) In addition to the criminal penalties provided in subsection (d) of this section, any lender or other person applying or attempting to apply more restrictive prepayment requirements or otherwise violating this section shall forfeit all unmatured interest and principal on the loan and shall be liable for reasonable attorney's fees incurred by the debtor as a result of the lender's violation of this section.
(f) Any payment of interest or principal made by the debtor shall not constitute a waiver of any of the debtor's rights provided by this section or any other law.