Utah passed a bill amending the Utah Consumer Credit Code Act (UCCC) with respect to a prepayment penalty. Under the bill, a prepayment penalty may not be imposed in connection with a closed-end loan. Previously, a prepayment penalty could only be imposed with respect to a closed-end mortgage loan if:

• The borrower was offered the option of entering into either:
  • A contract without a prepayment penalty; or
  • A contract with a prepayment penalty and a reduced finance charge; and
• The borrower entered into the contract with the prepayment penalty.

The bill becomes effective May 6, 2026.

Click to view the Utah Senate Bill 230: https://www.tenaco.com/wp-content/uploads/2026/03/UT-SB-230-03-25-26.pdf