Lock-out Period - REMIC regulations stipulate a minimum two year period, commencing on the date a loan is securitized, during which the loan cannot be defeased. However, some defeasance provisions in loan documents state a longer period, the "lock-out period", during which the loan is locked-out from defeasance. Can a commercial loan have a lock out period for 5 years from the date of the loan origination in NY. How can I sell or pay of the loan in less than 5 years. * Note I'm also willing to pay the 5% per-payment now, I'm 50 months in and was informed I must wait 10 more months before i can pre-pay the loan. Is this legal in NY ?