OAR 441-735-0205: Limitation on Charging a Prepayment Penalty

A licensee may not charge a penalty for prepayment of all or part of the unpaid balance of a loan where: (1) The licensee has repossessed any collateral offered for the loan, sold the collateral and applied the proceeds of the sale towards the unpaid balance of the loan; (2) The licensee exercises an option contained in the loan agreement to require immediate repayment of all or part of the unpaid balance of the loan; or (3) The licensee demands repayment of all or part of the unpaid balance of the loan.