Principal-Only Payment Method Clause Samples

Principal-Only Payment Method. The numerator of the fraction will ----------------------------- be the amount of principal repaid and the denominator will be the sum of the numerator and the amount of principal to be repaid in the future. Under this method, principal payments must be made at least annually and at least as rapidly as level payments over the loan term, which cannot exceed 10 years, including renewals and extensions, and the portion of each repayment treated as interest may not exceed the payment amount that would be treated as interest under standard loan amortization tables.