Opinion No. Oag 25-77, 66 Op. Att'y Gen. 90 (1977)

R. J. MCMAHON, Commissioner of Savings and Loan

You ask under what circumstances a state-chartered savings and loan association may impose a prepayment penalty on outstanding mortgage loans. In your opinion request you note a possible conflict between sec. 138.05 (2), Stats., applicable generally to all lenders, and sec. 215.21, Stats., applicable only to state-chartered savings and loan associations.

Section 138.05 (2), Stats., provides as follows:

"(2) Any loan for which the rate of interest charged exceeds $10 per $100 for one year computed upon the declining principal balance may be prepaid…