Louisiana Revised Statutes 9:5324 – Schedule of penalties
Terms Used In Louisiana Revised Statutes 9:5324
- Instrument: means any instrument, whether or not negotiable, which evidences the indebtedness of one or more persons. See Louisiana Revised Statutes 9:5321
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Rural Property: means a tract of land which is at least forty acres in area and from which at least seventy-five percent of the income derived is from agricultural or livestock purposes or mineral income and which is not located within the territorial limits of any incorporated municipality. See Louisiana Revised Statutes 9:5321
No penalty for the prepayment of any indebtedness evidenced by an instrument which is secured by a mortgage on rural property may exceed:
(1) five percent of the unpaid principal balance if prepaid during the first year from the date of the instrument;
(2) four percent of the unpaid principal balance if prepaid during the second year from the date of the instrument;
(3) three percent of the unpaid principal balance if prepaid during the third year from the date of the instrument;
(4) two percent of the unpaid principal balance if prepaid during the fourth year from the date of the instrument;
(5) one percent of the unpaid principal balance if prepaid during the fifth year from the date of the instrument;
(6) no prepayment penalty shall be assessed if prepaid more than five years from the date of the instrument.
Added by Acts 1977, No. 251, §1.