Prepayment Interpretation for 30 Year P&I Note

[Jason W.]

I just came across a lien note with the following language “Prepayments will be applied to installments on the last maturing principal, and interest on that prepaid principal will immediately cease to accrue.”

I had a few people look at this and got 2 different interpretations so casting a wider net for consensus and feedback. How would you apply a prepayment to your loan with this verbiage?

The note is P&I for 30 years.