summary
Introduced
01/06/2026
01/06/2026
In Committee
02/11/2026
02/11/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Interest Act. Provides that, whenever the rate of interest exceeds an annual percentage rate of 8% on any written contract, agreement or bond for deed providing for the installment purchase of residential real estate made primarily for personal, family, or household purposes (rather than for the installment purchase of residential real estate), or on any loan secured by a mortgage on residential real estate made primarily for personal, family, or household purposes (rather than on any loan secured by a mortgage on residential real estate), it shall be unlawful to provide for a prepayment penalty or other charge for prepayment.
AI Summary
This bill amends the Interest Act to prohibit prepayment penalties on certain residential real estate contracts and loans. Specifically, if the annual interest rate on a written contract for the installment purchase of residential real estate, or on a loan secured by a mortgage on residential real estate, exceeds 8%, it becomes unlawful to include any prepayment penalty or other charge for paying off the debt early. This change applies to contracts and loans primarily for personal, family, or household purposes.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
House Financial Institutions and Licensing Committee Hearing (16:00:00 2/24/2026 Room 122) (on 02/24/2026)
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