HAR §6-27-22. Prepayment penalty; allowable loan charges

(a) If the borrower pays off the entire member home loan balance within one year after the date of the note or, when a construction loan is made under the program, the date the Notice of Completion was filed with the court, there shall be a prepayment penalty of six per cent. (b) The lender may require the borrower to pay all reasonable fees and charges ordinarily charged to and paid by a borrower for a loan. However, the lender may not charge the borrower any more than the amounts shown below for the following items: Item Amount Loan origination fee $300 or one per cent of the loan amount, whichever is larger. Loan origination fee for construction loans and home $300 or two per cent of the loan amount, whichever is larger. improvement loans (c) The lender may charge a deposit fee when the application is made. The deposit shall be credited towards the closing costs if the loan is made. If the loan is not made, the deposit shall be returned to the applicant, less any costs chargeable to the applicant. [Eff 2/9/89; am 1/29/90; am 6/11/92] (Auth: HRS §§88-28, 88-119.5) (Imp: HRS §§88­ 119, 88-119.5)