Cancellation Commission Clause Samples

Cancellation Commission. The Borrower will pay the Agent, whenever this occurs, an early cancellation commission of one percent, over the amount to cancel, should cancellation occur the first three years of the life of the loan, or a commission of point five percent (0.50%) over the amount to cancel if the cancellation occurs during the fourth or fifth year of life of the loan. As from the fifth year no cancellation commission shall be due. This commission will be distributed by the Agent among the Lenders according to their undertakings in the loan.