prepayment

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prepayment

[-pā′mənt]
Etymology: L, prae + pacere, to pacify
the payment in advance for health care services by subscribers to a third-party insurance program.
References in periodicals archive ?
The prepayment penalty should not be charged when the mortgage debt is accelerated as the result of the borrower's default in making the mortgage payments.
Prime borrowers who choose to accept a loan with a prepayment penalty tend to do so because it was presented with a lower interest rate.
If you are considering accepting a prepayment penalty clause, make sure you know the details of your contract:
That you're getting a lower interest rate in exchange for the prepayment penalty.
For example, a $1 million one year interest only mortgage with a rate of 12% might have guaranteed interest prepayment penalty of six months.
The loan also features a flexible prepayment penalty of 5% years 1 and 2; 4% years 3 and 4; 3% years 5 and 6; 2% years 7 and 8 and 1% 'years 9 and 10 with the last 90 days open to prepayment without penalty.
9 million, including the aggregate principal, future interest payments, and a prepayment penalty, to retire the debt early.
The prepayment penalty equals 5 percent year 1, 4 percent year 2, 3 percent year 3, 2 percent years 4 and 5, 1 percent years 6 and 7 and is reset for the last five years of the 12-year term.
625 percent and a 10-year term, The special feature of this loan was that although the client had a prohibitive yield maintenance penalty on the existing loan, Meridian was able to convince the lender to keep the loan in its portfolio, be flexible on the prepayment penalty, and deliver a very low rate to the client.
The prepayment penalty on the permanent loan will be of a sliding scale nature and the lender charged a one percent fee for both the construction and permanent financing combined.
Bluegreen Corporation will record a prepayment penalty of approximately $962,500 and write off approximately $750,000 of debt issuance costs related to the redemption of the Notes in the quarter ending June 30, 2005.
The prepayment penalty on the permanent loan will be of a flexible, sliding scale nature and the lender charged a 1 percent fee for both the construction and permanent financing combined.