# Prepayment Penalty Presence Check

Check whether a loan carries a prepayment penalty before any extra principal payment is planned.

## Scope
Preparation and review only. No account action or professional decision.

## Inputs
Loan terms on prepayment penalties and the planned extra payment.

## Workflow
1. Read the loan terms for a prepayment penalty clause.
2. Record the penalty formula if present.
3. Compute the penalty on the planned extra payment.
4. Return the presence check without making any payment.

## Output contract
loan | has_penalty | planned_extra | penalty_rate | penalty_amount

## Fictional acceptance test
Fictional loan terms include a 2% penalty on prepaid amounts: a planned 5,000 extra payment would trigger 100 in penalty, so the plan is flagged before any payment.

## Review gates
Keep original values, source IDs and version dates. Unknown facts stay held. Use qualified review for hiring, legal and accounting conclusions. No send, share, sign-in, scheduling, ledger change or payment. Fictional contract review is not a live account compatibility test.

## Method source
https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/

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