Final Yield Maintenance Payment Date Clause Samples

The Final Yield Maintenance Payment Date clause defines the last date on which a borrower must pay a yield maintenance fee if they prepay a loan. In practice, this clause specifies a cutoff point—often tied to a period before the loan's maturity—after which prepayment penalties no longer apply. By establishing this date, the clause provides certainty for both lender and borrower regarding the financial consequences of early loan repayment, ensuring the lender is compensated for lost interest while giving the borrower a clear timeline for penalty-free prepayment.