A. For the purpose of this section:
1. "First deed of trust" or "first mortgage" includes all deeds of trust and mortgages, and amendments thereto, that are made by the same grantor or mortgagor, secure notes held by the same holder, convey substantially the same real estate, and are superior to all other deeds of trust or mortgages on the real estate; and
2. "Real estate" includes a leasehold estate of not less than 25 years.
B. Every loan contract, except as provided in subsection D, that is secured by a first deed of trust or first mortgage on real estate if the principal amount of the loan is less than $75,000, shall:
1. Permit the prepayment of the unpaid principal at any time; and
2. Not provide for a prepayment penalty in excess of one percent of the unpaid principal balance.
C. Any prepayment penalty provision in violation of subdivision B 2 shall be unenforceable as to the amount in excess of one percent of such balance.
D. The provisions of:
1. Subsections B and C shall not apply to secured or unsecured notes evidencing installment sales contracts; and
2. Subdivision B 2 and subsection C shall not apply to any loan contract that is (i) subject to § 6.2-422 or 6.2-1409 or (ii) governmentally regulated as to prepayment privilege.
1987, c. 622, §§ 6.1-330.69, 6.1-330.81; 2010, c. 794.
Structure Code of Virginia
Title 6.2 - Financial Institutions and Services
Chapter 4 - Certain Lending Practices
§ 6.2-400. Amount of late charge; when charge can be made
§ 6.2-401. Acceleration clause in note evidencing installment loan; effect of acceleration
§ 6.2-402. Notice of use of Rule of 78 rebate method
§ 6.2-404. When use of Rule of 78 prohibited or permitted
§ 6.2-405. References to sections regulating rebates of unearned interest and prepayment penalties
§ 6.2-406. Disclosure of terms of mortgage application
§ 6.2-407. Lenders to furnish borrower with copy of appraisal
§ 6.2-408. Priority of interest on debts secured by mortgage or deed of trust
§ 6.2-409. Addition of unpaid interest to principal balance
§ 6.2-410. Borrowers not to be required to employ particular professionals
§ 6.2-411. Requirements relating to insurance
§ 6.2-412. Insurance coverage under certain loans not to exceed replacement value of improvements
§ 6.2-413. Obligation of lender to reimburse unused mortgage guaranty insurance premiums
§ 6.2-414. Obligation of person maintaining escrow account to pay taxes and insurance; penalties
§ 6.2-415. Lender not to cancel insurance policy at time of refinancing under certain circumstances
§ 6.2-416. Certain mortgages not to prohibit further encumbrance of real property
§ 6.2-418. Property owner entitled to written statement of payoff amount
§ 6.2-419. Disclosure of terms of assumption
§ 6.2-420. Prepayment penalty not to be collected in certain circumstances
§ 6.2-421. Certain contracts to permit prepayment; amount of prepayment penalty
§ 6.2-422. Prepayment penalty for loan secured by home occupied by borrower
§ 6.2-425. Cardholder not liable in absence of request for, consent to issuance of, or use of card
§ 6.2-426. When request, consent, or use not condition precedent to liability
§ 6.2-427. Costs and attorney fee in suit on card; evidence of request or consent
§ 6.2-428. Production of credit card number as condition of check cashing or acceptance prohibited
§ 6.2-429. Improper use of payment device numbers
§ 6.2-430. Place where transaction occurred; federal Fair Credit Billing Act
§ 6.2-431. Certain cards excepted
§ 6.2-432. Credit card account disclosures
§ 6.2-433. Amendment to open-end credit contract or plan by bank or savings institution
§ 6.2-434. Law governing open-end credit contract or plan by bank or savings institution
§ 6.2-435. Law governing open-end credit contract or plan by seller or lender