---
urn: urn:us-la:rs:9:5324
citation: "R.S. 9:5324"
status: active
breadcrumb: "Title 9 › Code Preliminary Title › Code Book III › Code Title XXII › Chapter 2 › Part II"
acts_citations:
  - { year: 1977, number: 251, section: 1, effective_date: null, role: enactment }
---

# Schedule of penalties

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.