(a) Except as limited by statutory provisions expressly applicable thereto, the privilege of prepayment of a loan, in whole or in part, and any refunds or premiums with respect thereto, shall be governed by contract between the parties.
(b)
(1) Any contract for a consumer loan that:
(A) Either prohibits prepayment or imposes a penalty for prepayment; and
(B) Is not subject to the federal Truth in Lending Act, compiled in 15 U.S.C. § 1601 et seq. and its implementing Regulation Z, compiled in 12 CFR 226 et seq.
(2) If such contract does not comply with subdivision (b)(1), the provision prohibiting prepayment or imposing the prepayment penalty shall be unenforceable.
(3) For purposes of this subsection (b), “consumer loan” means an extension of credit:
(A) To one (1) or more natural persons;
(B) Primarily for personal, family or household purposes; and
(C) Secured by real property or secured by personal property used or expected to be used as the principal dwelling of the consumer.
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