The bill amends K.S.A. 2025 Supp. 16-207 to prohibit the assessment of a prepayment penalty against any party for a home loan made primarily for personal, family, or household purposes if the prepayment occurs more than six months after the execution of the loan note. This change replaces the previous language that allowed for such penalties to be assessed after the six-month period. Additionally, the bill clarifies that lenders may still collect certain fees and expenses related to the loan process, and it outlines the consequences for contracting a greater interest rate than authorized.

Furthermore, the bill repeals the existing section of K.S.A. 2025 Supp. 16-207 and specifies that the act will take effect upon its publication in the Kansas register. The amendments aim to provide greater protection for borrowers by eliminating prepayment penalties after a specified period, thereby facilitating more favorable loan terms for consumers.

Statutes affected:
As introduced: 16-207, 1-101
As Amended by Senate Committee: 16-207, 1-101