2006 Code of Virginia § 6.1-330.84 - Prepayment by borrower from industrial loan association; rebates for unearned interest; prepayment ...

6.1-330.84. Prepayment by borrower from industrial loan association;rebates for unearned interest; prepayment penalty.

Any natural person borrowing from an industrial loan association shall havethe right to anticipate payment of his debt at any time. In cases whereinterest has been added to the face amount of the note, such person shallhave the right to receive a rebate by way of credit for any unearnedinterest, which rebate shall be computed in accordance with the Rule of 78 asillustrated in 6.1-330.86 or by using any other method that is at least asfavorable to such borrower on loans (i) with an initial maturity andcorresponding amortization period of sixty-one months or less and (ii)payable in equal periodic installments, and on other loans under a method atleast as favorable to the borrower as the actuarial method. In addition, theindustrial loan association may charge a prepayment penalty not to exceed twopercent of the amount of the prepayment, provided such prepayment penalty,including the percent thereof, is set forth in the contract of indebtednessand is disclosed to the borrower pursuant to the federal interest disclosurelaws.

(1987, c. 622; 1990, c. 338; 1991, c. 171.)