Early Amortization Period definition: Copy, customize, and use instantly
Introduction
The term "Early Amortization Period" refers to a period in which the scheduled repayment of a financial obligation accelerates before its originally agreed-upon maturity. It is essential for defining conditions under which accelerated repayment is triggered, protecting lenders, and managing financial risks.
Below are various examples of how "Early Amortization Period" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Early Amortization Period" as a trigger for accelerated repayment
This definition ties "Early Amortization Period" to specific financial triggers leading to an early repayment schedule.
"Early Amortization Period" means the period commencing upon the occurrence of an Early Amortization Event and continuing until the outstanding principal balance of the applicable financial obligations has been fully repaid.
Definition of "Early Amortization Period" as a result of performance metrics
This definition connects "Early Amortization Period" to the failure to meet key financial performance benchmarks.
"Early Amortization Period" refers to the period that begins upon the failure of the borrower to maintain the minimum required debt service coverage ratio and remains in effect until the ratio is restored to compliance or the debt is fully repaid.
Definition of "Early Amortization Period" as a protection mechanism for lenders
This definition links "Early Amortization Period" to measures protecting lenders from borrower default risk.
"Early Amortization Period" means the period triggered when the collateral value falls below the required threshold, resulting in the accelerated payment of principal to mitigate lender exposure.
Definition of "Early Amortization Period" as a contractual safeguard
This definition applies "Early Amortization Period" to safeguard investors against credit deterioration.
"Early Amortization Period" refers to the time frame initiated upon the deterioration of the underlying asset quality, requiring the borrower to make principal payments ahead of schedule to maintain investor confidence.
Definition of "Early Amortization Period" as a response to credit downgrades
This definition ties "Early Amortization Period" to credit rating downgrades that impact financial agreements.
"Early Amortization Period" means the period commencing when the credit rating of the issuer falls below the investment-grade threshold, triggering accelerated amortization of outstanding obligations.
Definition of "Early Amortization Period" as a remedy for covenant breaches
This definition connects "Early Amortization Period" to contractual breaches affecting financial agreements.
"Early Amortization Period" refers to the period triggered upon the breach of a material financial covenant, requiring the borrower to commence immediate principal payments.
Definition of "Early Amortization Period" as a response to payment defaults
This definition links "Early Amortization Period" to borrower defaults on scheduled payments.
"Early Amortization Period" means the period beginning upon the occurrence of a payment default under the agreement, requiring full principal repayment over an accelerated schedule.
Definition of "Early Amortization Period" as an investor protection mechanism
This definition applies "Early Amortization Period" to structured finance transactions ensuring investor protection.
"Early Amortization Period" refers to the period in which payments to investors are accelerated due to the failure of the issuing entity to meet predetermined financial performance benchmarks.
Definition of "Early Amortization Period" as a response to regulatory changes
This definition ties "Early Amortization Period" to compliance with regulatory adjustments impacting debt structures.
"Early Amortization Period" means the period triggered when regulatory changes impose new capital requirements, resulting in the accelerated repayment of outstanding principal.
Definition of "Early Amortization Period" as a consequence of asset deterioration
This definition connects "Early Amortization Period" to the decline in the value of securitized assets.
"Early Amortization Period" refers to the period commencing when the deterioration of securitized asset performance breaches the established thresholds, triggering an accelerated repayment schedule.
Definition of "Early Amortization Period" as a response to liquidity concerns
This definition links "Early Amortization Period" to liquidity challenges affecting financial obligations.
"Early Amortization Period" means the period initiated upon a material liquidity shortfall, requiring increased principal payments to preserve capital stability.
Definition of "Early Amortization Period" as a safeguard against operational risk
This definition applies "Early Amortization Period" to risks associated with operational failures.
"Early Amortization Period" refers to the time frame initiated upon the occurrence of a major operational failure impacting the issuer’s ability to meet financial obligations, resulting in accelerated repayments.
Definition of "Early Amortization Period" as a response to servicer termination
This definition ties "Early Amortization Period" to changes in servicer agreements.
"Early Amortization Period" means the period that begins when the designated servicer is terminated for cause, requiring accelerated repayment of outstanding balances.
Definition of "Early Amortization Period" as a response to fraud detection
This definition connects "Early Amortization Period" to the discovery of fraudulent activity affecting financial agreements.
"Early Amortization Period" refers to the period commencing upon the identification of fraudulent transactions within the securitized pool, triggering accelerated repayments.
Definition of "Early Amortization Period" as a consequence of excess delinquency
This definition links "Early Amortization Period" to increased levels of non-performing assets.
"Early Amortization Period" means the period initiated when delinquent receivables exceed the pre-established threshold, requiring accelerated payments to mitigate losses.
Definition of "Early Amortization Period" as a structured finance safeguard
This definition applies "Early Amortization Period" to structured finance transactions for risk management.
"Early Amortization Period" refers to the period during which collections from securitized assets are diverted to repay investors due to an early amortization trigger event.
Definition of "Early Amortization Period" as a response to interest rate volatility
This definition ties "Early Amortization Period" to fluctuating interest rates that impact debt structures.
"Early Amortization Period" means the period triggered when interest rate changes adversely affect the securitized assets’ ability to generate expected cash flows, requiring accelerated repayment.
Definition of "Early Amortization Period" as a reaction to market conditions
This definition connects "Early Amortization Period" to adverse market conditions that impact financial performance.
"Early Amortization Period" refers to the period commencing when market volatility results in a decline in securitized asset performance, requiring immediate principal repayment.
Definition of "Early Amortization Period" as an investor-driven protection mechanism
This definition links "Early Amortization Period" to investor-protection provisions in financial agreements.
"Early Amortization Period" means the period triggered when investor-required performance benchmarks are not met, leading to accelerated principal payments.
Definition of "Early Amortization Period" as a contractual response to credit enhancement failure
This definition applies "Early Amortization Period" to failures in credit support mechanisms.
"Early Amortization Period" refers to the period commencing upon the exhaustion of credit enhancements, requiring an accelerated repayment schedule to mitigate investor risk.
Definition of "Early Amortization Period" as a response to cash flow disruptions
This definition ties "Early Amortization Period" to material disruptions in expected cash flows.
"Early Amortization Period" means the period beginning when the securitized cash flows fall below the required levels, necessitating early repayment of outstanding obligations.
Definition of "Early Amortization Period" as a remedy for servicer default
This definition connects "Early Amortization Period" to defaults by the entity managing the financial assets.
"Early Amortization Period" refers to the period triggered upon the default of the servicer, requiring accelerated repayment to protect investor interests.
Definition of "Early Amortization Period" as a requirement in asset-backed securities
This definition links "Early Amortization Period" to obligations under asset-backed security agreements.
"Early Amortization Period" means the period during which asset-backed securities begin accelerated repayment due to a material adverse change in collateral performance.
Definition of "Early Amortization Period" as a response to non-compliance with reporting obligations
This definition applies "Early Amortization Period" to failures in financial reporting compliance.
"Early Amortization Period" refers to the period that begins when the issuer fails to provide required financial disclosures, triggering early repayment obligations.
Definition of "Early Amortization Period" as a response to legal or regulatory violations
This definition ties "Early Amortization Period" to breaches of legal or regulatory requirements.
"Early Amortization Period" means the period triggered when the issuer is found in violation of applicable financial regulations, requiring accelerated repayments to limit exposure.
Definition of "Early Amortization Period" as a consequence of sponsor insolvency
This definition connects "Early Amortization Period" to the financial distress of the securitization sponsor.
"Early Amortization Period" refers to the period commencing upon the insolvency of the transaction sponsor, triggering full principal repayment on an accelerated basis.
Definition of "Early Amortization Period" as a response to trust termination
This definition links "Early Amortization Period" to the termination of a trust structure backing financial instruments.
"Early Amortization Period" means the period that begins upon the dissolution of the securitization trust, requiring repayment of all outstanding obligations.
Definition of "Early Amortization Period" as a risk mitigation mechanism
This definition ties "Early Amortization Period" to structured finance risk management.
"Early Amortization Period" means the period that commences when a predefined trigger event occurs, requiring the acceleration of principal repayments to protect investors from potential credit deterioration.
Definition of "Early Amortization Period" as a contractual repayment adjustment
This definition connects "Early Amortization Period" to loan repayment terms.
"Early Amortization Period" refers to the timeframe in which the outstanding principal of a securitized loan pool is repaid at an accelerated rate, as specified in the underlying agreement.
Definition of "Early Amortization Period" as a credit enhancement strategy
This definition links "Early Amortization Period" to investor protection strategies.
"Early Amortization Period" means the period triggered by a significant decline in credit quality or excess spread, during which collections are redirected primarily to principal repayment instead of new credit issuance.
Definition of "Early Amortization Period" as a trigger-based repayment period
This definition applies "Early Amortization Period" to structured finance contingencies.
"Early Amortization Period" refers to the phase initiated when contractual triggers, such as payment defaults or servicer insolvency, require the immediate repayment of outstanding balances.
Definition of "Early Amortization Period" as a risk event response
This definition ties "Early Amortization Period" to responses following market disruptions.
"Early Amortization Period" means the period that begins when specified adverse financial events occur, requiring an issuer to accelerate debt repayment in a securitization structure.
Definition of "Early Amortization Period" as a securitization safeguard
This definition connects "Early Amortization Period" to credit-backed financial instruments.
"Early Amortization Period" refers to the timeframe during which all available collections from a securitized asset pool are used to repay investors, reducing exposure to further losses.
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