California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 4 — Loan, Chapter 4 — Shared Appreciation Loans of E.R.I.S.A. Pension Funds, Article 3 — Terms and Conditions, Section 1917.032
(a) The borrower shall have the right to prepay, at any time, in full or in part, the principal loan balance of the shared appreciation loan, together with accrued interest, including deferred contingent interest.
(b) Nothing in this chapter shall prevent a borrower from obligating himself or herself, by an agreement in writing, to pay a prepayment charge, as authorized by this section, upon prepayment of the loan, in full or in part, within five years of the date of execution of the shared appreciation loan.
(c) Any prepayment charge imposed upon the prepayment of a shared appreciation loan shall not exceed the amount authorized and specified in subdivision (b) of Section 2954.9.
(d) No prepayment charge shall be imposed as to any portion of the contingent deferred interest.
Notes
Allows a shared-appreciation borrower to prepay principal and accrued interest, including contingent deferred interest, in whole or part at any time. Allows a written agreement imposing an authorized prepayment charge for prepayment within five years after execution, subject to the referenced statutory cap, but prohibits any prepayment charge on the contingent deferred interest portion.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1917.032 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-4/chapter-4/article-3/section-1917-032