12 CFR § 160.34 - Prepayments.

---
identifier: "/us/cfr/t12/s160.34"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 160.34 - Prepayments."
title_number: 12
title_name: "Banks and Banking"
section_number: "160.34"
section_name: "Prepayments."
chapter_name: "COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY"
part_number: "160"
part_name: "LENDING AND INVESTMENT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1462a, 1463, 1464, 1467a, 1701j-3, 1828, 3803, 3806, 5412(b)(2)(B); 42 U.S.C. 4106."
regulatory_source: "76 FR 49030, Aug. 9, 2011, unless otherwise noted."
cfr_part: "160"
---


# 160.34 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.