CFR > Title 12 - Banks and Banking > CHAPTER V—OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY > PART 560—LENDING AND INVESTMENT > SUBPART A—Lending and Investment Powers for Federal Savings Associations (§560.30 to §560.60) > 560.34—Prepayments.

560.34—Prepayments.

Any prepayment on a real estate loan must be applied directly to reduce the principal balance on the loan unless the loan contract or the borrower specifies otherwise. Subject to the terms of the loan contract, a Federal savings association may impose a fee for any prepayment of a loan.