diff --git a/daemon/peer.c b/daemon/peer.c
index d9dc5facc..91e72bf74 100644
--- a/daemon/peer.c
+++ b/daemon/peer.c
@@ -744,7 +744,8 @@ static void close_depth_cb(struct peer *peer, unsigned int depth,
 	}
 }
 
-static UNNEEDED struct channel_htlc *htlc_by_index(const struct commit_info *ci, size_t index)
+static struct channel_htlc *htlc_by_index(const struct commit_info *ci,
+					  size_t index)
 {
 	if (ci->map[index] == -1)
 		return NULL;
@@ -769,6 +770,70 @@ static UNNEEDED bool htlc_a_offered(struct commit_info *ci, size_t index)
 	return index < tal_count(ci->cstate->a.htlcs);
 }
 
+/* Create a HTLC refund collection */
+static UNNEEDED const struct bitcoin_tx *htlc_timeout_tx(const struct peer *peer,
+						const struct commit_info *ci,
+						unsigned int i)
+{
+	u8 *wscript;
+	struct channel_htlc *htlc;
+	struct bitcoin_tx *tx = bitcoin_tx(peer, 1, 1);
+	struct bitcoin_signature sig;
+	u64 fee, satoshis;
+
+	htlc = htlc_by_index(ci, i);
+
+	wscript = bitcoin_redeem_htlc_send(peer,
+					   &peer->us.finalkey,
+					   &peer->them.finalkey,
+					   &htlc->expiry,
+					   &peer->them.locktime,
+					   &ci->revocation_hash,
+					   &htlc->rhash);
+
+	/* We must set locktime so HTLC expiry can OP_CHECKLOCKTIMEVERIFY */
+	tx->lock_time = htlc->expiry.locktime;
+	tx->input[0].index = 0;
+	bitcoin_txid(ci->tx, &tx->input[0].txid);
+	satoshis = htlc->msatoshis / 1000;
+	tx->input[0].amount = tal_dup(tx->input, u64, &satoshis);
+	tx->input[0].sequence_number = bitcoin_nsequence(&peer->them.locktime);
+
+	/* Using a new output address here would be useless: they can tell
+	 * it's our HTLC, and that we collected it via timeout. */
+	tx->output[0].script = scriptpubkey_p2sh(tx,
+				 bitcoin_redeem_single(tx, &peer->us.finalkey));
+	tx->output[0].script_length = tal_count(tx->output[0].script);
+
+	log_unusual(peer->log, "Pre-witness txlen = %zu\n",
+		    measure_tx_cost(tx) / 4);
+
+	assert(measure_tx_cost(tx) == 83 * 4);
+
+	/* Witness length can vary, due to DER encoding of sigs, but we
+	 * use 539 from an example run. */
+	/* FIXME: Dynamic fees! */
+	fee = fee_by_feerate(83 + 539 / 4,
+			     peer->dstate->config.closing_fee_rate);
+
+	/* FIXME: Fail gracefully in these cases (not worth collecting) */
+	if (fee > satoshis || is_dust_amount(satoshis - fee))
+		fatal("HTLC refund amount of %"PRIu64" won't cover fee %"PRIu64,
+		      satoshis, fee);
+
+	tx->output[0].amount = satoshis - fee;
+
+	sig.stype = SIGHASH_ALL;
+	peer_sign_htlc_refund(peer, tx, wscript, &sig.sig);
+
+	tx->input[0].witness = bitcoin_witness_htlc(tx, NULL, &sig, wscript);
+
+	log_unusual(peer->log, "tx cost for htlc timeout tx: %zu",
+		    measure_tx_cost(tx));
+
+	return tx;
+}
+
 /* We assume the tx is valid!  Don't do a blockchain.info and feed this
  * invalid transactions! */
 static void anchor_spent(struct peer *peer,
diff --git a/daemon/secrets.c b/daemon/secrets.c
index a18b2d76c..e1a6d33fa 100644
--- a/daemon/secrets.c
+++ b/daemon/secrets.c
@@ -84,6 +84,21 @@ void peer_sign_spend(const struct peer *peer,
 		      sig);
 }
 
+void peer_sign_htlc_refund(const struct peer *peer,
+			   struct bitcoin_tx *spend,
+			   const u8 *htlc_witnessscript,
+			   struct signature *sig)
+{
+	/* Spend tx only has one input: that of the commit tx. */
+	sign_tx_input(peer->dstate->secpctx,
+		      spend, 0,
+		      NULL, 0,
+		      htlc_witnessscript,
+		      &peer->secrets->final,
+		      &peer->us.finalkey,
+		      sig);
+}
+
 void peer_sign_mutual_close(const struct peer *peer,
 			    struct bitcoin_tx *close,
 			    struct signature *sig)
diff --git a/daemon/secrets.h b/daemon/secrets.h
index 63234ae08..0bfe42987 100644
--- a/daemon/secrets.h
+++ b/daemon/secrets.h
@@ -25,6 +25,11 @@ void peer_sign_spend(const struct peer *peer,
 		     const u8 *commit_witnessscript,
 		     struct signature *sig);
 
+void peer_sign_htlc_refund(const struct peer *peer,
+			   struct bitcoin_tx *spend,
+			   const u8 *htlc_witnessscript,
+			   struct signature *sig);
+
 void peer_sign_mutual_close(const struct peer *peer,
 			    struct bitcoin_tx *close,
 			    struct signature *sig);
diff --git a/daemon/test/test.sh b/daemon/test/test.sh
index fa9426a14..d73245c92 100755
--- a/daemon/test/test.sh
+++ b/daemon/test/test.sh
@@ -178,6 +178,7 @@ log-level=debug
 bitcoind-poll=1
 min-expiry=900
 bitcoin-datadir=$DATADIR
+locktime=600
 EOF
 
 cat > $DIR2/config <<EOF
@@ -185,6 +186,7 @@ log-level=debug
 bitcoind-poll=1
 min-expiry=900
 bitcoin-datadir=$DATADIR
+locktime=600
 EOF
 
 if [ -n "$GDB1" ]; then