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(a) As utilized in this area:
(1) “Open-end credit plan” gets the meaning set forth in Regulation Z for the Federal Reserve System ( 12 C.F.R. 226.2(a)(20) ).
(2) “ Installment loan ” means any loan specified in subdivision (h) extended under an installment loan function.
(3) “ Installment loan feature ” means an element of an credit that is open-end which offers for an independent subaccount regarding the open-end credit plan pursuant to which the key of, and interest on, the mortgage related to that subaccount should be repaid in considerably equal installments more than a specified duration without reference to the quantity outstanding under any kind of function associated with the open-end credit plan or even the payment schedule according to the other function.
(b)(1) Except as otherwise provided by statute, the borrower under any installment loan will probably be eligible to prepay your whole or any an element of the installment loan, along with any accrued interest, whenever you want.
(2) pertaining to any installment loan, nothing in this part shall preclude a debtor from becoming obligated, by the agreement written down, to pay for a prepayment charge; but just a prepayment made within five many years of the date the installment loan is created might be susceptible to a prepayment fee after which entirely as herein set forth. A quantity perhaps perhaps not surpassing 20 % regarding the original principal amount regarding the installment loan can be prepaid in almost any one 12-month duration without incurring a prepayment cost. A prepayment cost can be imposed on any quantity prepaid in almost any 12-month period in more than 20 % of this original principal level of the installment loan, which charge shall not meet or exceed a sum add up to the re payment of half a year’ advance interest in the quantity prepaid more than 20 percent associated with the original principal level of the installment loan. Continue reading “Ca Code, Civil Code – CIV § 2954.11”