Common use of Annual 20% Prepayment Clause in Contracts

Annual 20% Prepayment. The Borrower may in each year of the Loan prepay without penalty an amount not greater than twenty percent (20%) of the original Principal Amount. The Borrower may make more than one prepayment in a year, but the total of all prepayments cannot be more than twenty percent (20%) of the original Principal Amount and each prepayment must be for an amount no less than one hundred dollars ($100.00). Such prepayments must be made on a payment date. If the Borrower does not prepay 20% of the original Principal Amount in a year, any unused portion cannot be carried forward to a future year.