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Home > Frequently Asked Questions > Pre-payment Penalty for Paying of a Water Project Loan Early  

Frequently Asked Questions: Pre-payment Penalty for Paying of a Water Project Loan Early

Title

Pre-payment Penalty for Paying of a Water Project Loan Early 

Program Area

Loans & Grants 

Specific Program

Water Project Loan Program 

CWCB Section

Finance 

Question

Is there a financial penalty for paying off the loan early?

Answer

No. The borrower can make additional payments without penalty, which may reduce the term of the loan; however, the annual loan payment will remain the same and be due by the date established. If the Borrower desires to reduce the annual payment amount after a principal prepayment, a contract amendment will be required. The cost of a contract amendment is $1,000 as established in CWCB Financial Policy No. 16.
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Created at 6/30/2010 3:03 PM  by System Account 
Last modified at 6/30/2010 3:03 PM  by System Account