Common use of INSTALLMENT TYPES Clause in Contracts

INSTALLMENT TYPES. During the entire Loan Tenure [including principal payment standstill period (in the duration of which the Borrower does not have to service the principal component), if any], receivables from the sale of the Flats/Units in the Project, which are hypothecated with BHFL, will be deposited with BHFL vide the Escrow mechanism as agreed between BHFL and the Borrower and as detailed in the Loan Agreement and the Escrow Agreement. The receivables will be used towards the repayment of the Loan and the Principal Outstanding will be deducted accordingly. During the principal payment standstill period, in addition to the payment made via the Escrow mechanism, the Borrower will pay the Interest on the Loan which is calculated basis the principal outstanding (‘POS’). At the end of principal payment standstill period, if any, the actual POS will be divided by remaining Loan Tenure. This amount will be called the Ideal Equated Monthly Principal (EMP) and will remain constant for the remaining loan tenure provided there is no additional disbursal to the loan account. The Ideal EMP will be deducted from the actual POS at the end of principal payment standstill period which will be the Ideal POS at the end of the principal payment standstill period. This Ideal POS will be calculated for all the remaining loan tenure by deducting the Ideal EMP from the Ideal POS every month. The actual POS will be compared against this Ideal POS every month. In case the actual POS is lower than the Ideal POS, no EMP will be payable for that month. In case actual POS is more than the Ideal POS, the differential amount will need to be paid on the due date. Interest amount will be calculated on a daily basis on the actual POS & will need to be paid on the due date. In case of additional disbursal during the loan tenure, the additional disbursed amount will get divided by the remaining loan tenure & the Ideal EMP will increase accordingly.

INSTALLMENT TYPES. During the entire Loan Tenure [including principal payment standstill period (in the duration of which the Borrower does not have to service the principal component), if any], receivables from the sale of the Flats/Units in the Project, which are hypothecated with BHFL, will be deposited with BHFL vide the Escrow mechanism as agreed between BHFL and the Borrower and as detailed in the Loan Agreement and the Escrow Agreement. The receivables will be used towards the repayment of the Loan and the Principal Outstanding will be deducted accordingly. During the principal payment standstill period, in addition to the payment made via the Escrow mechanism, the Borrower will pay the Interest on the Loan which is calculated basis the principal outstanding (‘POS’). At the end of principal payment standstill period, if any, the actual POS will be divided by remaining Loan Tenure. This amount will be called the Ideal Equated Monthly Principal (EMP) ), and will remain constant for the remaining loan tenure provided there is no additional disbursal to the loan account. The Ideal EMP will be deducted from the actual POS at the end of principal payment standstill period which will be the Ideal POS at the end of the principal payment standstill period. This Ideal POS will be calculated for all the remaining loan tenure by deducting the Ideal EMP from the Ideal POS every month. The actual POS will be compared against this Ideal POS every month. In case the actual POS is lower than the Ideal POS, no EMP will be payable for that month. In case actual POS is more than the Ideal POS, the differential amount will need to be paid on the due date. Interest amount will be calculated on a daily basis on the actual POS & will need to be paid on the due date. In case of additional disbursal during the loan tenure, the additional disbursed amount will get divided by the remaining loan tenure & the Ideal EMP will increase accordingly.