408.234. Minimum amount of loan--collateral--prepayment rights, method of computation.
Minimum amount of loan--collateral--prepayment rights, method ofcomputation.
408.234. 1. No lender shall make a second mortgage loan pursuant tosections 408.231 to 408.241 in an initial principal amount of less than twothousand five hundred dollars.
2. A lender may take a security interest in any collateral inconjunction with residential real estate in connection with a secondmortgage loan.
3. The borrower shall have an unconditional right to prepay anysecond mortgage loan. If any such loan providing for interest being addedto the principal is prepaid in full one month or more before the finalinstallment date, the lender shall recompute the amount of interest earnedto the date of prepayment in full on the basis of the rate of interestoriginally contracted for computed on the actual unpaid principal balancesfor the time actually outstanding.
4. When fees charged need not be disclosed in the annual percentagerate required by Title 15, U.S.C. Sections 1601, et seq., and regulationsthereunder because such fees are deminimus amounts or for other reasons,such fees need not be included in the annual percentage rate for stateexamination purposes.
(L. 1979 S.B. 305, A.L. 1980 H.B. 1195, A.L. 1981 S.B. 5 Revision, A.L. 1994 H.B. 1312 merged with S.B. 718, A.L. 2000 S.B. 896)