Final answer:
Yes, a trust deed note taken by a state savings and loan association on a single-family owner-occupied residence can be prepaid without penalty.
Step-by-step explanation:
Yes, a trust deed note taken by a state savings and loan association on a single-family owner-occupied residence can be prepaid without penalty. This means that the borrower has the option to pay off the loan early without incurring any additional charges or fees.
The prepayment of a trust deed note refers to paying off the outstanding balance of the promissory note secured by a trust deed or deed of trust before its scheduled maturity date. A trust deed, also known as a deed of trust, is a legal document used in real estate transactions to secure a loan with the property itself. It involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee).