[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 911 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 911

To amend the Truth in Lending Act to prohibit prepayment penalties, and 
                          for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2009

  Mr. Merkley introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

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                                 A BILL


 
To amend the Truth in Lending Act to prohibit prepayment penalties, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Mortgage Responsibility 
Act''.

SEC. 2. PROHIBITION ON PREPAYMENT PENALTIES.

    The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by 
inserting after section 129A the following new section:

``SEC. 129B. PROHIBITION ON PREPAYMENT PENALTIES.

    ``No prepayment fees or penalties shall be charged or collected 
under the terms of any consumer credit transaction secured by an owner-
occupied principal dwelling of the consumer. Any prepayment penalty in 
violation of this section shall be unenforceable.''.
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