This bill amends K.S.A. 2025 Supp. 16-207 to prohibit the assessment of a prepayment penalty on home loans made primarily for personal, family, or household purposes if the prepayment occurs more than six months after the execution of the loan note. The existing language that allowed for such penalties has been deleted, and the new provision clarifies that this prohibition applies specifically to loans secured by a real estate mortgage.

Additionally, the bill retains provisions regarding interest rates, fees that lenders may collect, and penalties for exceeding authorized interest rates. It also specifies that certain transactions, such as those covered under the Kansas mortgage business act or the uniform consumer credit code, are exempt from these new regulations. The bill will take effect upon publication in the statute book.

Statutes affected:
As Introduced: 16-207, 1-101
As Amended by Senate Committee: 16-207, 1-101
Enrolled: 16-207, 9-2201, 1-101
As introduced: 16-207, 1-101