Finance
A prepayment penalty clause in a Utah mortgage:
AIs required by Utah law on all loans
BCharges the borrower a fee for paying off the loan early, and is regulated or prohibited on certain loan types✓ Correct
COnly applies to commercial loans
DPrevents the lender from demanding early repayment
Explanation
A prepayment penalty charges borrowers for paying off a loan before the end of the term. While permissible on some loan types in Utah, qualified mortgages (QM) under Dodd-Frank restrictions limit or prohibit prepayment penalties on most consumer mortgages.
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