prepayment


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Related to prepayment: prepayment clause, Prepayment penalty, Prepayment Risk

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 ?
More recently Swalec reduced the additional charges made for paying for gas via a prepayment meter, so that the average household paying for gas this way now pays only around pounds 2 per month more than those paying quarterly bills.
Instead of specifying a single price (the interest rate), the mortgage contract stipulates a two-part price; that is, two separate prices that will be paid under two different circumstances: an interest rate that will be paid as long as there is an outstanding balance and a prepayment penalty that will be paid if the mortgage is prepaid.
If you are considering accepting a prepayment penalty clause, make sure you know the details of your contract:
When introduced in May 1997, the model was the industry's first prepayment model constructed using loan-level data extracted from mortgage servicing tapes.
Board members concluded that, while the problems a prepayments standard would address are real, they're closely related to other issues in the broader project on present-value-based measurements and should be addressed in that project.
NEW YORK -- Voluntary car prepayments will continue to be few and far between from stressed U.
10 eliminates the tedious work of maintaining each state's individual prepayment penalties and increases the salability of loans on the secondary market, freeing up warehouse lines of credit," Larsen said.
A sliding scale prepayment penalty schedule, also called the graduated prepayment or, more appropriately, the declining percentage prepayment, is easiest to understand: the borrower is required to pay the lender a certain percentage of the amount being prepaid as a penalty.
Al Rowland, President and Chief Operating Officer, indicated the Company is able to make the voluntary prepayments primarily due to additional asset sales from the Company's divestiture from California and related tax benefits received in addition to cash flow from operations.
According to officials at the two largest investors in American home mortgages - Fannie Mae and Freddie Mac - lenders are gearing up to introduce optional prepayment loan programs early in 1996.
The Financial Accounting Standards Board removed from its technical agenda a project on investments with prepayment risk.
The cost of acquiring blocks of individual issues of even $100,000 in the retail market is extremely high, and the need for diversification is paramount in order to minimize the risk of an unexpected mortgage prepayment.