In Meyers v. Home Sav. & Loan Assn. (1974) 38 Cal.App.3d 544, the court affirmed the order of dismissal after sustaining of demurrers. In Meyers the appellant maintained that all prepayment penalty provisions in real estate loan contracts employed by the defendants violated Civil Code section 1670 as a liquidated damage. The court noted that the clause does not penalize for the "breach of an obligation," no breach is involved in the prepayment transaction but rather the exercise of an option given to the debtor for an alternative method of performance. ( Id., at p. 546.) The prepayment fee was upheld.