                                 CODE OF VIRGINIA

PREPAYMENT PENALTY NOT TO BE COLLECTED IN CERTAIN CIRCUMSTANCES (§ 6.2-420)

No lender shall collect or receive any prepayment penalty on loans secured by
real property comprised of one- to four-family residential dwelling units if the
prepayment results from the enforcement of the right to call the loan upon the
sale of the real property that secures the loan. If the loan is prepaid because
of sale to a person who the lender has refused to approve for purposes of
assuming the loan or failed to approve within 15 days after receipt by it of
written request for approval, the prepayment shall be presumed to result from
enforcement of the right to call the loan.

HISTORY: 1987, c. 622, § 6.1-330.87; 2010, c. 794.