Regulatory Alerts2008-03-19
Nonobjection to Charge Prepayment Penalties in Parity
The Pennsylvania Department of Banking issued a nonobjection letter to a state-chartered bank regarding its proposal to impose prepayment fees on loans. The Department authorized these fees based on the bank's parity with federal savings associations under the Federal Home Owners Loan Act and relevant federal regulations. This nonobjection is contingent upon the facts and representations provided in the bank's notice, with any changes potentially leading to an amendment or reversal of the decision.
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