NO. 613 Philadelphia, 1981, Appeal from the Order of the Lancaster County Common Pleas Court, Civil Action - Law, No. 141 September, 1980 - Declaratory Judgment.
Sam Ferguson Musser, Lancaster, for appellant.
David E. Wagenseller, Lancaster, for appellees.
Cavanaugh, McEwen and Beck, JJ. Cavanaugh, J., concurred in the result.
[ 309 Pa. Super. Page 131]
We here review an appeal from the order of the Common Pleas Court of Lancaster County by which the learned Judge Wilson Bucher sustained the preliminary objection of appellee in the nature of a demurrer and decreed that the terms of the mortgage between appellant-mortgagor and appellees-mortgagees preclude the payment in advance of the entire principal balance together with interest. We affirm.
The sole question set forth in the brief of appellant is:
When a mortgage provides for annual payments of $19,000.00 on principal and also provides for an annual interest payment, but specifies no term for the mortgage, may the mortgage debt be paid in full at any time?
We observe preliminarily that the provisions of the Act on Maximum Interest Rates*fn1 are not pertinent to our study for the reason that the prohibition of prepayment penalties refers only to residential mortgage obligations:
[ 309 Pa. Super. Page 132]
§ 405. Prepayment penalty prohibited
Residential mortgage obligations contracted for on or after the effective date of this act may be prepaid without any penalty or other charge for such prepay-payment at any time before the end of the period of the loan.*fn2
The pertinent mortgage in the amount of $363,120.80 upon 154.68 acres is not a "residential mortgage" as that ...