Ridgley v. Topa Thrift & Loan Assn.

Opinion

WEKDEGAR, J.

Defendant loaned plaintiffs $2.3 million for two years, secured by real property plaintiffs had improved and intended to sell. Plaintiffs sold the property before the loan matured and, on defendant’s demand, repaid the loan principal, together with a prepayment fee of about $113,000, equal to six months’ interest. Under the parties’ loan agreement, plaintiffs owed defendant a prepayment fee at the time of sale only if plaintiffs had been more than 15 days late with any scheduled interest payment or had defaulted on any other contractual obligation to defendant; the fee was…