Additional Payment on Redemption Clause Samples
The 'Additional Payment on Redemption' clause requires the party redeeming a financial instrument, such as a bond or loan, to pay an extra amount beyond the principal and accrued interest at the time of redemption. This additional payment may be a fixed fee, a percentage of the outstanding amount, or calculated based on a formula specified in the agreement. Its core function is to compensate the issuer or lender for the early return of funds, covering potential losses or costs associated with the premature termination of the investment or loan.
Additional Payment on Redemption. In the event that the Participant receives Fund Securities the value of which exceeds the net asset value of the applicable Fund at the time of redemption, the Participant agrees to pay, on the same business day it is notified, or cause the Participant Client to pay, on such day, to the applicable Fund an amount in cash equal to the difference.