7 CFR § 1714.9 - Prepayment of insured loans.

---
identifier: "/us/cfr/t7/s1714.9"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1714.9 - Prepayment of insured loans."
title_number: 7
title_name: "Agriculture"
section_number: "1714.9"
section_name: "Prepayment of insured loans."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1714"
part_name: "PRE-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC LOANS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 901  1921  and 6941"
regulatory_source: "58 FR 66260, Dec. 20, 1993, unless otherwise noted."
cfr_part: "1714"
---


# 1714.9 Prepayment of insured loans.

This section sets out provisions for prepayment of insured electric loans at face value. Provisions for discounted prepayment of RUS loans are set out in 7 CFR part 1786.

(a) *Municipal rate loans.* Loan documents for municipal rate loans shall provide for the following:

(1) *Prepayment on a rollover maturity date.* All, or a portion of, the outstanding balance on any advance from a municipal rate loan may be prepaid on any rollover maturity date pursuant to § 1714.6(a)(4).

(2) *Prepayment on a date other than a rollover maturity date.* A borrower may elect at the time of loan approval to include a prepayment option (call provision) that will allow the borrower to prepay all, or a portion of, the outstanding balance on any advance on a date other than a rollover maturity date. Interest rates on advances from loans with a prepayment provision will be increased as set forth in § 1714.4(a).

(b) *Hardship rate loans.* Loan documents for hardship loans shall provide that the loan may be prepaid at face value at any time without penalty.