Amortization Requirement Clause Samples
The Amortization Requirement clause sets out the obligation for a borrower to repay a loan in regular, scheduled installments over a specified period, rather than in a single lump sum at maturity. Typically, this clause details the frequency and amount of each payment, which may include both principal and interest, and can apply to various types of loans such as mortgages or equipment financing. Its core practical function is to ensure predictable repayment for the lender and manageable payment amounts for the borrower, thereby reducing default risk and providing financial clarity for both parties.
Amortization Requirement. The amortization of each Mortgage Loan must reduce to zero, or as to Balloon Loans, the respective Balloon Amount, at the end of the Mortgage Loan term through the application of regular monthly payments. Capitalization of interest is not permitted, except as provided by the terms of any Mortgage Loan that provides for negative amortization.
Amortization Requirement. 7.3.3. Negative Amortization....................................... 7.3.4.
Amortization Requirement. 44 7.3.3. Negative Amortization........................................45 7.3.4. Interest Calculations........................................45 7.3.5. Buydown Loans................................................45
Amortization Requirement. 47 7.3.3. Negative Amortization........................................48 7.3.4. Interest Calculations........................................48 7.3.5. Buydown Loans................................................48 Section 7.4 Application Procedure..........................................48 7.4.1. Application Priority.........................................48 7.4.2. [Reserved]...................................................48 7.4.3. Advance Payments.............................................48 Section 7.5 Curtailments...................................................49 7.5.1. Curtailment Amount...........................................49 7.5.2. Curtailment Application......................................49 7.5.3. Effect of Curtailment........................................49 7.5.4. Curtailment Transmission.....................................49
Amortization Requirement. 48 7.3.3 Negative Amortization. . . . . . . . . . . . . . . . . . . 48 7.3.4 Interest Calculations. . . . . . . . . . . . . . . . . . . 48 7.3.5 Buydown Loans. . . . . . . . . . . . . . . . . . . . . . . 49