Additional Note Principal Balance Clause Samples
The "Additional Note Principal Balance" clause defines the portion of a loan or note's principal that is added beyond the original amount, typically as a result of advances, accrued interest, or other adjustments specified in the agreement. In practice, this clause outlines how and when such additional amounts are calculated and incorporated into the outstanding balance, such as when a borrower receives further disbursements or when unpaid interest is capitalized. Its core function is to ensure clarity and transparency regarding the total amount owed under the note, preventing disputes over the calculation of the principal balance as it evolves over time.
Additional Note Principal Balance. In the event of payment of Additional Note Principal Balance by the Noteholders as provided in Section 2.01 (c) of the Sale and Servicing Agreement, each Noteholder shall, and is hereby authorized to, record on the schedule attached to its Note the date and amount of any Additional Note Principal Balance advanced by it, and each repayment thereof; provided that failure to make any such recordation on such schedule or any error in such schedule shall not adversely affect any Noteholder’s rights with respect to its Additional Note Principal Balance and its right to receive interest payments in respect of the Additional Note Principal Balance held by such Noteholder. Absent manifest error, the Note Principal Balance of each Note as set forth in the notations made by the related Noteholder on such Note shall be binding upon the Indenture Trustee and the Issuer; provided that failure by a Noteholder to make such recordation on its Note or any error in such notation shall not adversely affect any Noteholder’s rights with respect to its Note Principal Balance and its right to receive principal and interest payments in respect thereof.