Principal Prepayment definition: Copy, customize, and use instantly
Introduction
The term "Principal Prepayment" refers to the early repayment of the principal portion of a debt, typically before the scheduled maturity date. This can occur under various conditions and is important for managing loan terms, interest payments, and the borrower’s obligations.
Below are various examples of how "Principal Prepayment" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Principal Prepayment" as early repayment
This definition ties "Principal Prepayment" to early repayment.
"Principal Prepayment" means the voluntary repayment of the principal portion of a loan or debt before the scheduled due date, either in full or in part.
Definition of "Principal Prepayment" as a contract provision
This definition connects "Principal Prepayment" to a contract provision.
"Principal Prepayment" refers to any repayment made by the borrower that reduces the principal balance of the loan, made before the maturity date, as defined by the terms of the agreement.
Definition of "Principal Prepayment" as a scheduled repayment option
This definition links "Principal Prepayment" to scheduled repayment options.
"Principal Prepayment" means the repayment of principal amounts on a loan, which may occur at the borrower’s discretion according to the terms of the financing agreement.
Definition of "Principal Prepayment" as a loan feature
This definition ties "Principal Prepayment" to a loan feature.
"Principal Prepayment" refers to the ability of a borrower to make additional payments towards the principal balance of a loan, reducing the outstanding debt ahead of schedule.
Definition of "Principal Prepayment" as an early repayment condition
This definition connects "Principal Prepayment" to early repayment conditions.
"Principal Prepayment" means a payment made toward the principal of a loan before it is due, subject to the terms and conditions outlined in the loan agreement.
Definition of "Principal Prepayment" as an optional repayment
This definition links "Principal Prepayment" to optional repayments.
"Principal Prepayment" refers to a voluntary repayment of principal that a borrower may choose to make, subject to the agreed-upon terms and conditions.
Definition of "Principal Prepayment" as a prepayment penalty context
This definition ties "Principal Prepayment" to prepayment penalties.
"Principal Prepayment" means an early repayment of the loan’s principal, which may incur prepayment penalties or fees, as specified in the loan agreement.
Definition of "Principal Prepayment" as a debt reduction method
This definition connects "Principal Prepayment" to debt reduction.
"Principal Prepayment" refers to the reduction of the outstanding debt balance by making early payments toward the principal, thereby decreasing the loan term and interest payments.
Definition of "Principal Prepayment" as an accelerated payment
This definition links "Principal Prepayment" to accelerated payments.
"Principal Prepayment" means an accelerated payment of principal by the borrower, which decreases the remaining balance of the loan prior to the agreed schedule.
Definition of "Principal Prepayment" as a partial repayment option
This definition ties "Principal Prepayment" to partial repayments.
"Principal Prepayment" refers to any payment made by the borrower that reduces the principal balance of the loan in part, ahead of the scheduled maturity date.
Definition of "Principal Prepayment" as a financing strategy
This definition connects "Principal Prepayment" to a financing strategy.
"Principal Prepayment" means a strategy used by borrowers to reduce outstanding debt by paying off portions of the principal before the debt is due, which can reduce interest payments over time.
Definition of "Principal Prepayment" as an early loan payoff option
This definition links "Principal Prepayment" to early loan payoff.
"Principal Prepayment" refers to the option of paying off a portion of or the entire principal balance of a loan ahead of its scheduled maturity date.
Definition of "Principal Prepayment" as a reduction in loan balance
This definition ties "Principal Prepayment" to a reduction in loan balance.
"Principal Prepayment" means an early reduction in the loan balance through repayment of the principal amount before the scheduled due date.
Definition of "Principal Prepayment" as a debt settlement method
This definition connects "Principal Prepayment" to debt settlement.
"Principal Prepayment" refers to a method of settling a portion of the loan by repaying principal amounts early, often reducing the total interest due over the life of the loan.
Definition of "Principal Prepayment" as a contract compliance
This definition links "Principal Prepayment" to contract compliance.
"Principal Prepayment" means the repayment of principal amounts made in accordance with the loan agreement’s terms, possibly affecting the interest calculation or loan term.
Definition of "Principal Prepayment" as a financial flexibility option
This definition ties "Principal Prepayment" to financial flexibility.
"Principal Prepayment" refers to the option available to a borrower to reduce principal before the maturity date, offering flexibility in managing future payments.
Definition of "Principal Prepayment" as a loan acceleration
This definition connects "Principal Prepayment" to loan acceleration.
"Principal Prepayment" means the acceleration of loan repayment by making an early payment of principal, reducing the remaining balance and the interest burden.
Definition of "Principal Prepayment" as a scheduled prepayment condition
This definition links "Principal Prepayment" to scheduled prepayment conditions.
"Principal Prepayment" refers to prepayments made according to the loan’s terms, which can occur at scheduled intervals or as a lump sum before maturity.
Definition of "Principal Prepayment" as a borrower’s prerogative
This definition ties "Principal Prepayment" to the borrower’s prerogative.
"Principal Prepayment" means the right of the borrower to make early payments toward the principal, reducing the debt balance before the scheduled term ends.
Definition of "Principal Prepayment" as a repayment adjustment option
This definition connects "Principal Prepayment" to repayment adjustments.
"Principal Prepayment" refers to the ability of the borrower to adjust repayment schedules by making prepayments toward principal, which may result in lower future payments.
Definition of "Principal Prepayment" as an early loan termination
This definition links "Principal Prepayment" to early loan termination.
"Principal Prepayment" means the repayment of principal before the loan's scheduled maturity, potentially leading to the early termination of the loan agreement.
Definition of "Principal Prepayment" as a loan restructuring option
This definition ties "Principal Prepayment" to loan restructuring.
"Principal Prepayment" refers to a loan restructuring option in which a borrower pays off a portion of the principal early, reducing future payment obligations and interest costs.
Definition of "Principal Prepayment" as a capital allocation tool
This definition connects "Principal Prepayment" to capital allocation.
"Principal Prepayment" means the allocation of available capital by the borrower to pay down the loan’s principal early, affecting liquidity and cash flow management.
Definition of "Principal Prepayment" as a liquidity management tool
This definition links "Principal Prepayment" to liquidity management.
"Principal Prepayment" refers to a strategy for managing liquidity, where a borrower uses available funds to prepay loan principal before the agreed-upon date.
Definition of "Principal Prepayment" as an early loan adjustment
This definition ties "Principal Prepayment" to early loan adjustment.
"Principal Prepayment" means an adjustment to the loan terms by paying down principal early, thus reducing the loan balance and potentially shortening the loan term.
Definition of "Principal Prepayment" as a performance-driven option
This definition connects "Principal Prepayment" to performance-driven options.
"Principal Prepayment" refers to early repayment of the loan’s principal, often driven by the borrower’s financial performance or improved cash flow conditions.
Definition of "Principal Prepayment" as a debt settlement provision
This definition links "Principal Prepayment" to debt settlement provisions.
"Principal Prepayment" means a provision that allows a borrower to make early repayments toward the principal, reducing the overall debt exposure.
Definition of "Principal Prepayment" as a debt reduction incentive
This definition ties "Principal Prepayment" to debt reduction incentives.
"Principal Prepayment" refers to an incentive provided to the borrower to reduce the principal early, resulting in lower interest payments and a quicker path to loan satisfaction.
Definition of "Principal Prepayment" as a flexible repayment arrangement
This definition connects "Principal Prepayment" to flexible repayment arrangements.
"Principal Prepayment" means the borrower’s ability to prepay principal amounts as part of a flexible repayment arrangement under the terms of the loan agreement.
Definition of "Principal Prepayment" as a loan balance reduction option
This definition links "Principal Prepayment" to loan balance reduction.
"Principal Prepayment" refers to the option of reducing the loan balance early by making a payment directly toward the principal, rather than paying only the interest.
Definition of "Principal Prepayment" as an interest cost reduction
This definition ties "Principal Prepayment" to interest cost reduction.
"Principal Prepayment" means the act of reducing the loan’s principal early, which in turn reduces the overall interest costs over the life of the loan.
Definition of "Principal Prepayment" as an early financial strategy
This definition connects "Principal Prepayment" to early financial strategies.
"Principal Prepayment" refers to an early financial strategy where the borrower repays part of the principal before the agreed-upon schedule, providing financial flexibility.
Definition of "Principal Prepayment" as a repayment schedule adjustment
This definition links "Principal Prepayment" to repayment schedule adjustments.
"Principal Prepayment" means an adjustment to the repayment schedule due to early payments made toward the loan principal, potentially altering the payment structure.
Definition of "Principal Prepayment" as a loan term reduction strategy
This definition ties "Principal Prepayment" to loan term reduction.
"Principal Prepayment" refers to a strategy where the borrower makes early payments toward the principal, thereby reducing the overall term of the loan.
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.