Discount Participation Interest. A Participation Interest having a term of not more than twelve months and with respect to which no principal or interest payments are due prior to the maturity date of the Participation Interest. A Discount Participation Interest is initially purchased at a discount to its full stated principal amount and provides for payment of the full stated principal amount on its maturity date.
Examples of Discount Participation Interest in a sentence
The purchase price for a Discount Participation Interest purchased from a Trust will be its Stated Principal Balance.
For any Discount Participation Interest, the Net Interest Rate is zero.