Interest Reduction definition

Interest Reduction is defined in the definition of Permitted Encumbrances.
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Interest Reduction. = (Principal Reduction) x (1.065)3
Sample 1
Interest Reduction. With respect to any Cross-Collateralization Date ------------------ and any Class of Certificates or Component in an Undercollateralized Group, an amount equal to the excess, if any, of (i) the product of (x) the applicable Undercollateralization Percentage (multiplied, if there are two Overcollateralized Mortgage Pools, by the applicable Proportionate Percentage), (y) the Pool Rate applicable to the Mortgage Pool relating to such Undercollateralized Group and (z) the Class Certificate Principal Amount or Aggregate Notional Amount of such Class or the Component Principal Amount of such Component, over (ii) the product of (x) the applicable Undercollateralization Percentage (multiplied, if there are two Overcollateralized Mortgage Pools, by the applicable Proportionate Percentage), (y) as to each Overcollateralized Mortgage Pool, the lesser of the related Pool Rate and the Pool Rate applicable to the Mortgage Pool relating to such Undercollateralized Group and (z) the Class Certificate Principal Amount or Aggregate Notional Amount of such Class or the Component Principal Amount of such Component. Any Interest Reductions shall be allocated to reduce Accrued Certificate Interest for each Class of Certificates other than the Class 1-A3 Certificates as provided in Section 5.02(e).
Sample 1

Examples of Interest Reduction in a sentence

  • If on any such Payment Date the Interest Reduction Amount in respect of the Notes is greater than the amount of interest payable in respect of the Notes on such Payment Date, such excess shall be deducted from the amount of interest payable in respect of the Notes on future Payment Dates until any such excess has been reduced to zero.

  • HUD uses the information to ensure that owners, mortgagees and or public entities enter into binding agreements for the continuation of Interest Reduction Payments (IRP) after refinancing eligible Section 236 projects.

  • Properties assisted under Section 236 of the National Housing Act (12 U.S.C. 1715z-1) which are receiving Section 236 Interest Reduction Payments (IRP) 2.

  • In the case of housing defined in section 4119(1)(A)(iii) of this title, redirection of the Interest Reduction Payment subsidies to a second mortgage.

  • The Interest Reduction Payment (IRP) must be decoupled from the Section 236 agreement if housing credits are awarded (exceptions permitted on case-by-case basis).

  • The Interest Reduction Payment (IRP) must be decoupled from the Section 236 agreement if housing credits are awarded (exceptions may be permitted on a case-by-case basis).

  • The amount of any Interest Reduction or Capital Reduction will be reflected in your RateSetter Account when the deduction is made but will only be paid into the Provision Fund when the relevant payment is made by the borrower.

  • If there is an Interest Reduction of 50% for 10 days, the Lender Rate for those 10 days would reduce to 2.5% and interest would accrue at 7p per day.

  • This may include, but is not limited to, the Preservation programs under the Title II Emergency Low Income Housing Preservation Act (ELIHPA) and the Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA), Section 236(e)(2) Decoupling Use Agreement, Section 250 Prepayment Use Agreement, a Section 219 Prepayment Use Agreement, or an Interest Reduction Payments Agreement associated with a state non-insured 236 mortgage where the mortgage was not decoupled.

  • However, there may be a few of such projects still in existence and a number of section 236 projects enter new contracts with HUD when they decouple their Interest Reduction Payment (IRP), enter into a five-year use agreement extension required in an IRP decoupling, or choice to participate in RAD.