6.2-420 - (Effective October 1, 2010) Prepayment penalty not to be collected in certain circumstances. - Virginia Statutes

§ 6.2-420. (Effective October 1, 2010) Prepayment penalty not to be collectedin certain circumstances.

No lender shall collect or receive any prepayment penalty on loans secured byreal property comprised of one- to four-family residential dwelling units ifthe prepayment results from the enforcement of the right to call the loanupon the sale of the real property that secures the loan. If the loan isprepaid because of sale to a person who the lender has refused to approve forpurposes of assuming the loan or failed to approve within 15 days afterreceipt by it of written request for approval, the prepayment shall bepresumed to result from enforcement of the right to call the loan.

(1987, c. 622, § 6.1-330.87; 2010, c. 794.)