Common use of Annual 20% Prepayment Clause in Contracts

Annual 20% Prepayment. Where the Charge secures a loan for a fixed term, you may, when not in default, on each anniversary of the Interest Adjustment Date prepay an amount not greater than 20% of the original Principal Amount of the fixed term loan. You may not prepay more than 20% of the original Principal Amount on any anniversary date, even though you may have prepaid less than 20% of that amount on a previous anniversary date;

Annual 20% Prepayment. Where the Charge secures a loan for a fixed term, you may, when not in default, on each anniversary of the Interest Adjustment Date prepay an amount not greater than 20% of the original Principal Amount of the fixed term loan. You may ma y not prepay more than 20% of the original Principal Amount on any anniversary date, even though you may have prepaid less than 20% of that amount on a previous anniversary date;