Prepayment Provision Clause Samples

A Prepayment Provision is a contractual clause that outlines the terms under which a borrower can repay a loan or debt before its scheduled maturity date. Typically, this provision specifies whether prepayment is allowed, if any penalties or fees apply, and the process for notifying the lender of early repayment. By clearly defining the rights and obligations related to early repayment, the clause helps prevent disputes and ensures both parties understand the financial implications of prepaying the debt.
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Prepayment Provision. The Mortgage Loan will be prepayable in whole or in part during its Term in accordance with the provisions of this paragraph. The Mortgage Loan will have a prepayment fee of ____% of the principal amount prepaid in loan years one and two and ____% of the principal amount prepaid in loan years three and four; provided, however, that there will be a right to prepay up to a portion of the principal of the Mortgage Loan equal to $100 million less the Sale Reduction Amount as of the Closing Date within the first nine (9) months of the Term, but in no event later than May 31, 2000, with a prepayment fee of ____% of the principal amount prepaid. No prepayment fee shall be payable in connection with (i) the payments required pursuant to the section hereof entitled "Amortization", (ii) involuntary prepayments due to casualty or condemnation or (iii) prepayments made to obtain an extension of the Term of the Mortgage Loan pursuant to the section hereof entitled "Extension Conditions". 225 EXHIBIT A Page 8 RELEASE: Borrower may obtain the release of a Property from the liens and security interests securing the Mortgage Loan in connection with a sale or refinancing of such Property, subject to the Prepayment Provision set forth above and subject to certain customary release provisions, including, but not limited to, the following:
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Prepayment Provision. It is agreed that the Note for the Aiken Loan shall be modified to provide the following prepayment privilege: Upon ninety (90) days written notice to New York Life, Maker may prepay the Note in full on any monthly installment due date provided there is paid, in addition to interest accrued to the date of such prepayment, a prepayment fee equal to the difference between the Loan Interest Rate and the Yield on U.S. Treasury Notes for a term equal to the remaining original loan term times the outstanding principal balance of the Aiken Loan at the time of such prepayment multiplied by the number of years and any fraction thereof on the loan term as if there had been no prepayment. In no event shall the prepayment fee be less than one percent (1%). The prepayment fee is to be computed on the unpaid principal balance at the time of such prepayment. In the event the outstanding principal balance hereof shall become due and payable as a result of (a) an Event of Default (as such term is defined in the Mortgage) causing the acceleration under this Note or the Loan Documents, which Event of Default shall be conclusively deemed to be a willful default for purposes of avoiding the prepayment fee to which Holder is entitled; (b) the exercise by Maker or any other party having the right to redeem or to prevent a foreclosure of the Secured Property of any right of redemption or repayment under foreclosure laws or other action to prevent a foreclosure of the Secured Property; (c) an acceleration by Holder as a result of the sale or further encumbrance of the Secured Property in violation of the applicable provisions of the Mortgage; or (d) a casualty or condemnation with respect to the Secured Property; then, in such event, Maker shall pay the prepayment fee and to the extent permitted by law, such prepayment fee shall be calculated in the same manner as specified above; provided that in the event such prepayment fee is construed to be interest under the laws of the State of South Carolina in any circumstance, such payment shall not be required to the extent that the amount thereof, together with other interest payable hereunder, exceeds the maximum interest that may be lawfully charged under the laws of the State of South Carolina.
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Prepayment Provision. A prepayment premium will be assessed on the current unpaid principal balance if this loan is paid in full prior to maturity as stated below: Year 1 5% Year 4 2% Year 2 4% Year 5 1% Year 3 3% Dated: July 27, 2001 ------------- Debtor: Meadow Valley Contractors, Inc. ---------------------------------------------- By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Title: Vice President ----------------------- -------------- If Corporation, have signed by President, Vice President or Treasurer, and give official title. ▇.▇. ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ------------------------------------------------------- Mailing Address City State Zip Code Secured Party: FCC Equipment Financing, Inc. ---------------------------------------------------- Name of individual, corporation or partnership By:_________________________Title___________________ if Corporation, give official title. If owner or partner, state which. ▇.▇. ▇▇▇ ▇▇▇▇▇ ---------------------------------------------------- ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ ---------------------------------------------------- If Debtor is partnership, enter: Partner's names Home Addresses --------------- --------------
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Prepayment Provision. Borrower shall pay a prepayment premium equal to one percent (1.0%) of the amount prepaid for all prepayments hereunder, whether voluntary or involuntary (including prepayments arising from acceleration, condemnation, payment of insurance premiums, arising from an Event of Default or otherwise), made during the first five (5) years of the term of this Note. Thereafter there is no prepayment premium hereunder.
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Prepayment Provision. The Note may be retired and repaid in part or in full prior to its normal maturity at any time without premium or penalty, provided, however, that such prepayment shall not serve to decrease or diminish the payments set forth in Section 2.02 above.
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Prepayment Provision. If Borrower makes any payment of principal with respect to any LIBOR Loan on any day other than the last day of a LIBOR Interest Period applicable to such LIBOR Loan, Borrower shall reimburse Bank on demand the Consequential Loss incurred by it as a result of the timing of such payment. A certificate of Bank setting forth the basis for the determination of the amount of a Consequential Loss shall be delivered to Borrower and shall, in the absence of manifest error, be conclusive and binding as to such determination and amount. Any conversion of a LIBOR Loan to a different LIBOR Interest Option on any day other than the last day of the LIBOR Interest Period of such LIBOR Loan shall be deemed a payment subject to the provisions of this section.
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Prepayment Provision. Borrower may prepay this Note in whole or in part at any time without premium or penalty. After the Conversion Date, upon making any prepayment of the principal in whole, Borrower shall pay to the Bank all interest and Expenses owing pursuant to this Note and remaining unpaid. After the Conversion Date, each partial prepayment of the Principal shall be applied in inverse order of maturity.
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Prepayment Provision. Without limitation of the terms and conditions of the Loan Agreement, the prepayment provisions of section 2.6.1(a) and (b) of the Loan Agreement shall be deemed to continue to apply to prepayment prior to the Maturity Date, as amended by this Agreement, such that the lowest percentage set forth therein, the 1% amount of the portion of the Term Loan or Revolver Loan so prepaid, shall apply to the Borrower's prepayment of the Revolver Loan and the Term Loan after the date hereof and prior to the Maturity Date.
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Related to Prepayment Provision

  • Prepayment Premium Borrower will be required to pay a prepayment premium in connection with certain prepayments of the Indebtedness, including a payment made after Lender’s exercise of any right of acceleration of the Indebtedness, as provided in the Note.

  • Prepayment of Notes 3 Section 2.1.

  • Prepayment Penalty Each Mortgage Loan that is subject to a Prepayment Penalty as provided in the related Mortgage Note is identified on the related Mortgage Loan Schedule. With respect to each Mortgage Loan that has a Prepayment Penalty feature, each such Prepayment Penalty is enforceable and will be enforced by the Seller during the period the Seller is acting as Interim Servicer for the benefit of the Purchaser, and each Prepayment Penalty is permitted pursuant to federal, state and local law. Each such Prepayment Penalty is in an amount not more than the maximum amount permitted under applicable law and no such Prepayment Penalty may be imposed for a term in excess of five (5) years with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage Loans originated on or after October 1, 2002, the duration of the Prepayment Penalty period shall not exceed three (3) years from the date of the Mortgage Note unless the Mortgage Loan was modified to reduce the Prepayment Penalty period to no more than three (3) years from the date of the related Mortgage Note and the Mortgagor was notified in writing of such reduction in Prepayment Penalty period. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the Mortgage Loan's origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the Mortgage Loan's origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, and (iii) the Prepayment Penalty is disclosed to the Mortgagor in the mortgage loan documents pursuant to applicable state, local and federal law. This representation and warranty is a Deemed Material and Adverse Representation;

  • Prepayment of the Notes In addition to the payment of the entire unpaid principal amount of the Notes at the final maturity thereof, the Company will make required, and may make optional, prepayments in respect of the Notes as hereinafter provided.

  • Repayment Prepayment and Cancellation 6 REPAYMENT