Principal Amount definition: Copy, customize, and use instantly
Introduction
The term "Principal Amount" refers to the original sum of money borrowed, invested, or owed in a financial transaction, excluding interest or other charges. It is a fundamental concept in contracts involving loans, bonds, and other financial agreements, ensuring clarity in repayment terms and financial obligations.
Below are various examples of how "Principal Amount" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Principal Amount" as the original loan balance
This definition ties "Principal Amount" to the initial sum borrowed under a loan agreement.
"Principal Amount" means the total sum of money advanced to the borrower under this agreement, excluding any accrued interest, fees, or penalties.
Definition of "Principal Amount" as the outstanding balance
This definition connects "Principal Amount" to the remaining unpaid balance on a financial obligation.
"Principal Amount" refers to the portion of the loan that remains unpaid at any given time, excluding accrued interest and other charges.
Definition of "Principal Amount" as an investment sum
This definition links "Principal Amount" to the amount of money invested before earnings or losses.
"Principal Amount" means the initial capital contribution made by an investor, exclusive of any gains, losses, or distributions.
Definition of "Principal Amount" as the base for interest calculation
This definition applies "Principal Amount" to the basis on which interest is computed in financial agreements.
"Principal Amount" refers to the original sum upon which interest accrues, as specified in the applicable financial agreement.
Definition of "Principal Amount" as a bond face value
This definition associates "Principal Amount" with the face value of a bond or debt security.
"Principal Amount" means the amount stated on the face of a bond or note, which the issuer agrees to repay at maturity.
Definition of "Principal Amount" as a mortgage loan sum
This definition connects "Principal Amount" to the loan sum secured by a mortgage.
"Principal Amount" refers to the initial loan amount secured by a mortgage, excluding interest, fees, and other charges.
Definition of "Principal Amount" as a revolving credit facility limit
This definition ties "Principal Amount" to the total draw amount in a revolving credit arrangement.
"Principal Amount" means the aggregate outstanding principal balance of all advances made under this revolving credit facility.
Definition of "Principal Amount" as a promissory note sum
This definition links "Principal Amount" to the stated sum in a promissory note.
"Principal Amount" refers to the amount set forth in a promissory note, representing the total sum due before interest and penalties.
Definition of "Principal Amount" as the unpaid principal balance in debt financing
This definition connects "Principal Amount" to the outstanding sum in a financing agreement.
"Principal Amount" means the unpaid balance of the original loan sum, not including accrued interest or penalties.
Definition of "Principal Amount" as the total amount owed under a financial instrument
This definition applies "Principal Amount" to the financial obligation before additional charges.
"Principal Amount" refers to the total sum owed under this financial instrument, excluding any interest, fees, or adjustments.
Definition of "Principal Amount" as a structured settlement sum
This definition associates "Principal Amount" with a settlement payment structure.
"Principal Amount" means the agreed-upon lump sum of a structured settlement, excluding periodic adjustments or interest accruals.
Definition of "Principal Amount" as an initial capital loaned
This definition links "Principal Amount" to the first disbursement of a loan.
"Principal Amount" refers to the total amount initially loaned by the lender, before the application of interest or fees.
Definition of "Principal Amount" as the debt principal in a financing transaction
This definition connects "Principal Amount" to the primary debt obligation.
"Principal Amount" means the amount borrowed under this agreement, which remains payable, exclusive of interest and other obligations.
Definition of "Principal Amount" as the repaid loan sum before interest
This definition ties "Principal Amount" to the sum repaid before additional charges.
"Principal Amount" refers to the portion of the loan repaid, excluding any accrued interest, late fees, or penalties.
Definition of "Principal Amount" as the credit line utilization amount
This definition applies "Principal Amount" to the utilized portion of a credit line.
"Principal Amount" means the total sum drawn from the credit line, subject to repayment terms and applicable interest rates.
Definition of "Principal Amount" as the insured amount in a financial policy
This definition associates "Principal Amount" with the insured value under a financial insurance policy.
"Principal Amount" refers to the sum insured under this policy, representing the baseline financial commitment.
Definition of "Principal Amount" as the outstanding principal on a credit card balance
This definition links "Principal Amount" to the unpaid portion of a credit card debt.
"Principal Amount" means the total amount charged to a credit card that remains unpaid, excluding accrued interest and penalties.
Definition of "Principal Amount" as the base sum for prepayment penalties
This definition connects "Principal Amount" to the calculation of prepayment penalties.
"Principal Amount" refers to the loan balance used in determining prepayment fees or penalties under this agreement.
Definition of "Principal Amount" as the core financial obligation in a term loan
This definition applies "Principal Amount" to a term loan’s repayment structure.
"Principal Amount" means the total amount borrowed under this term loan agreement, payable in accordance with the agreed repayment schedule.
Definition of "Principal Amount" as the base sum for debt restructuring
This definition ties "Principal Amount" to the core amount subject to modification in a debt restructuring.
"Principal Amount" means the outstanding loan balance before any adjustments made pursuant to a debt restructuring agreement.
Definition of "Principal Amount" as the sum subject to refinancing
This definition connects "Principal Amount" to the amount refinanced in a new loan.
"Principal Amount" refers to the original debt amount refinanced under this agreement, excluding interest, fees, or additional charges.
Definition of "Principal Amount" as the capital commitment in a funding agreement
This definition links "Principal Amount" to the agreed-upon funding obligation.
"Principal Amount" means the total capital committed by the lender or investor under this funding arrangement.
Definition of "Principal Amount" as the fixed repayment obligation in an installment loan
This definition applies "Principal Amount" to the fixed sum repayable over time.
"Principal Amount" refers to the sum borrowed that is to be repaid in periodic installments, excluding accrued interest or penalties.
Definition of "Principal Amount" as the initial debt obligation in a commercial loan
This definition associates "Principal Amount" with the sum lent under a commercial loan agreement.
"Principal Amount" means the total sum extended to the borrower under this commercial loan agreement, exclusive of interest or additional fees.
Definition of "Principal Amount" as the corporate bond issuance value
This definition links "Principal Amount" to the capital raised through a corporate bond issuance.
"Principal Amount" refers to the stated face value of a corporate bond, representing the issuer’s repayment obligation at maturity.
Definition of "Principal Amount" as the base amount in an intercompany loan
This definition connects "Principal Amount" to the sum loaned between related entities.
"Principal Amount" means the initial amount borrowed under an intercompany loan agreement, before interest accrual or other adjustments.
Definition of "Principal Amount" as the base capital in a financial derivative
This definition ties "Principal Amount" to the notional amount in derivative contracts.
"Principal Amount" refers to the underlying notional sum on which financial derivatives are based, excluding gains, losses, or premiums.
Definition of "Principal Amount" as the base for legal damages calculation
This definition applies "Principal Amount" to the core sum used in legal compensation calculations.
"Principal Amount" means the primary financial obligation forming the basis for calculating damages, penalties, or restitution.
Definition of "Principal Amount" as the maximum debt exposure in a credit facility
This definition associates "Principal Amount" with the upper limit of debt exposure.
"Principal Amount" refers to the total allowable borrowing under this credit facility, subject to agreed lending terms.
Definition of "Principal Amount" as the financial liability in a settlement agreement
This definition links "Principal Amount" to the sum payable in a legal settlement.
"Principal Amount" means the total financial obligation agreed upon in settlement, excluding additional costs such as legal fees or accrued interest.
Definition of "Principal Amount" as the balance due under a lease agreement
This definition connects "Principal Amount" to the base financial liability in a lease.
"Principal Amount" refers to the total unpaid balance under a lease agreement, representing the core lease obligation.
Definition of "Principal Amount" as the fixed debt in a securitization transaction
This definition ties "Principal Amount" to the securitized loan amount.
"Principal Amount" means the total sum of loans or receivables pooled and securitized under this agreement.
Definition of "Principal Amount" as the base loan sum in an adjustable-rate mortgage
This definition applies "Principal Amount" to the underlying mortgage balance in an ARM loan.
"Principal Amount" refers to the total sum of an adjustable-rate mortgage loan, subject to interest rate adjustments over time.
Definition of "Principal Amount" as the fixed sum in a structured finance agreement
This definition associates "Principal Amount" with the core sum in structured finance.
"Principal Amount" means the base sum on which structured finance transactions are modeled, excluding interest and contingent adjustments.
Definition of "Principal Amount" as the settlement sum in a financial dispute
This definition links "Principal Amount" to the agreed settlement figure in a financial dispute.
"Principal Amount" refers to the agreed-upon financial obligation settled between parties, exclusive of additional penalties or interest.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.