408.036. Prepayment penalty by lender prohibited, exception--maximum permitted, exceptions--return of moneys above maximum permitted.

MISSOURI STATUTES AND CODES

408.036. Prepayment penalty by lender prohibited, exception--maximum permitted, exceptions--return of moneys above maximum permitted.

Prepayment penalty by lender prohibited, exception--maximum permitted,exceptions--return of moneys above maximum permitted.

408.036. Notwithstanding any other provision of this chapter to thecontrary, no prepayment penalty shall be charged or exacted by a lender onany promissory note or other evidence of debt secured by residential realestate when the full principal balance thereof is paid after five yearsfrom the origination date and prior to maturity; and in no event shall anyprepayment penalty exceed two percent of the balance at the time ofprepayment, except for, when an existing mortgage loan is replaced with anew mortgage loan made by another lender and the proceeds from the new loanare used to either pay down or reduce the balance to a smaller amountbefore paying in full and in order to avoid or reduce the prepaymentpenalty. In such an occurrence the prepayment penalty shall not be morethan two percent of the average daily balance for the prior six months,provided that the 1990 and 1992 reenactment of this section shall not beconstrued to be action taken in accordance with Public Law 96.221, Section501(b)(4). Any fees received in excess of those permitted pursuant to thissection shall be returned to the person from whom received upon demand.Business and corporate loans are not subject to the provisions of thissection.