{"component": "clause", "props": {"groups": [{"size": 9, "snippet_links": [{"key": "unpaid-principal-amount", "type": "definition", "offset": [31, 54]}, {"key": "interest-accrued", "type": "definition", "offset": [83, 99]}, {"key": "to-lender", "type": "clause", "offset": [144, 153]}, {"key": "payment-on-the-maturity-date", "type": "clause", "offset": [177, 205]}], "snippet": "Borrower acknowledges that the unpaid principal amount of this Loan and all unpaid interest accrued thereon will be immediately due and payable to Lender in full as one balloon payment on the Maturity Date.", "samples": [{"hash": "gSKy94RkJkg", "uri": "/contracts/gSKy94RkJkg#balloon-payment", "label": "Loan and Security Agreement (HNC Software Inc/De)", "score": 18.0, "published": true}, {"hash": "ceYNbp8iGDf", "uri": "/contracts/ceYNbp8iGDf#balloon-payment", "label": "Loan Agreement (Talarian Corp)", "score": 16.0, "published": true}, {"hash": "bHYUyaPpq1i", "uri": "/contracts/bHYUyaPpq1i#balloon-payment", "label": "Loan and Security Agreement (Onsale Inc)", "score": 16.0, "published": true}], "hash": "ea049e40328d609952d59ad2afbd9a42", "id": 2}, {"size": 8, "snippet_links": [{"key": "the-principal", "type": "clause", "offset": [27, 40]}, {"key": "interest-of-the-loan", "type": "clause", "offset": [49, 69]}, {"key": "date-of", "type": "clause", "offset": [109, 116]}, {"key": "by-borrower", "type": "clause", "offset": [159, 170]}, {"key": "accrued-interest", "type": "clause", "offset": [209, 225]}, {"key": "principal-of", "type": "definition", "offset": [248, 260]}], "snippet": "This is a balloon note and the principal and the interest of the Loan is expected to be paid on the maturity date of the Loan. If the Loan is not fully repaid by Borrower on the maturity date of the Loan, the accrued interest shall be added to the principal of the Loan.", "samples": [{"hash": "i12JR9zQ1fP", "uri": "/contracts/i12JR9zQ1fP#balloon-payment", "label": "Stock Purchase Agreement (Lugee Li Yeung Tak)", "score": 33.7871322632, "published": true}, {"hash": "gqyv2ymA8zE", "uri": "/contracts/gqyv2ymA8zE#balloon-payment", "label": "Stock Purchase Agreement (Liquidmetal Technology LTD)", "score": 33.7871322632, "published": true}, {"hash": "eTXnOqos1T1", "uri": "/contracts/eTXnOqos1T1#balloon-payment", "label": "Stock Purchase Agreement (Lugee Li Yeung Tak)", "score": 33.7871322632, "published": true}], "hash": "08868a056ec0578d240a04ac6ebaef11", "id": 3}, {"size": 6, "snippet_links": [{"key": "the-buyer", "type": "clause", "offset": [39, 48]}, {"key": "applicable-year", "type": "definition", "offset": [168, 183]}, {"key": "the-contract-period", "type": "definition", "offset": [247, 266]}, {"key": "the-principal-amount", "type": "definition", "offset": [298, 318]}, {"key": "the-interest-rate", "type": "clause", "offset": [410, 427]}, {"key": "the-year", "type": "definition", "offset": [432, 440]}, {"key": "the-balloon-payment", "type": "clause", "offset": [446, 465]}, {"key": "in-addition-to-the", "type": "clause", "offset": [486, 504]}], "snippet": "Parties hereby agree that in the event the BUYER opts to make a balloon payment, the following shall apply: If made within the Insert year here e.g. 1st put N/A if not applicable year to insert year here e.g. 2nd put N/A if not applicable year of the Contract Period, there shall be no interest on the principal amount. If made after the Insert year here put N/A if not applicable year of the Contract Period, the INTEREST RATE for the year when the balloon payment is made shall apply in addition to the principal amount.", "samples": [{"hash": "lw2YffIgJe5", "uri": "/contracts/lw2YffIgJe5#balloon-payment", "label": "Sales Contracts", "score": 21.6420269012, "published": true}, {"hash": "lE56hoZcDP4", "uri": "/contracts/lE56hoZcDP4#balloon-payment", "label": "Contract to Sell", "score": 21.6420269012, "published": true}, {"hash": "iJ5ZmrCKGG9", "uri": "/contracts/iJ5ZmrCKGG9#balloon-payment", "label": "Contract to Sell", "score": 21.6420269012, "published": true}], "hash": "dc7e2759496f474bf70889ae381e0919", "id": 4}, {"size": 5, "snippet_links": [{"key": "on-the-maturity-date", "type": "clause", "offset": [72, 92]}, {"key": "payments-due", "type": "clause", "offset": [109, 121]}, {"key": "with-respect-to", "type": "clause", "offset": [122, 137]}, {"key": "based-on", "type": "definition", "offset": [168, 176]}, {"key": "amortization-period", "type": "clause", "offset": [180, 199]}, {"key": "term-of-the-loan", "type": "definition", "offset": [217, 233]}, {"key": "major-portion", "type": "definition", "offset": [248, 261]}, {"key": "principal-amount-of-the-loan", "type": "clause", "offset": [269, 297]}], "snippet": "BORROWER ACKNOWLEDGES AND AGREES THAT A SUBSTANTIAL PAYMENT WILL BE DUE ON THE MATURITY DATE, AS THE MONTHLY PAYMENTS DUE WITH RESPECT TO THE LOAN HAVE BEEN CALCULATED BASED ON AN AMORTIZATION PERIOD THAT EXCEEDS THE TERM OF THE LOAN; THEREFORE, A MAJOR PORTION OF THE PRINCIPAL AMOUNT OF THE LOAN WILL NOT HAVE BEEN PAID BY WAY OF THE MONTHLY PAYMENTS.", "samples": [{"hash": "ekF3xCPauv1", "uri": "/contracts/ekF3xCPauv1#balloon-payment", "label": "Loan Agreement (Lodging Fund REIT III, Inc.)", "score": 33.3696098328, "published": true}, {"hash": "loHctRsmWG9", "uri": "/contracts/loHctRsmWG9#balloon-payment", "label": "Term Loan Note (Condor Hospitality Trust, Inc.)", "score": 26.8644771576, "published": true}, {"hash": "dQUSKoTcbDq", "uri": "/contracts/dQUSKoTcbDq#balloon-payment", "label": "Term Loan Note (Condor Hospitality Trust, Inc.)", "score": 26.8644771576, "published": true}], "hash": "f8f4cf1cda10c9639f8176ebff9f5811", "id": 5}, {"size": 5, "snippet_links": [{"key": "contract-balance", "type": "definition", "offset": [11, 27]}, {"key": "interest-and-fees", "type": "clause", "offset": [43, 60]}, {"key": "paid-in-full", "type": "clause", "offset": [76, 88]}, {"key": "day-of", "type": "clause", "offset": [114, 120]}, {"key": "execution-of-this-agreement", "type": "clause", "offset": [162, 189]}], "snippet": "The entire contract balance, including all interest and fees owing, must be paid in full not later than the first day of the Twenty-fourth (24th) month from full execution of this agreement.", "samples": [{"hash": "fxcZQ17MGW8", "uri": "/contracts/fxcZQ17MGW8#balloon-payment", "label": "Contract of Sale", "score": 26.6974773407, "published": true}], "hash": "996fc91144e2b43de1c90014867c2204", "id": 7}, {"size": 5, "snippet_links": [{"key": "this-agreement", "type": "clause", "offset": [0, 14]}, {"key": "agreed-to", "type": "definition", "offset": [89, 98]}], "snippet": "THIS AGREEMENT PROVIDES FOR A BALLOON PAYMENT. BORROWER ACKNOWLEDGES THAT LENDER HAS NOT AGREED TO REFINANCE THAT PAYMENT.", "samples": [{"hash": "H4rUpBqhGM", "uri": "/contracts/H4rUpBqhGM#balloon-payment", "label": "Credit Agreement (Qad Inc)", "score": 23.4257354736, "published": true}, {"hash": "iuABg5ZlGJO", "uri": "/contracts/iuABg5ZlGJO#balloon-payment", "label": "Credit Agreement (Alico Inc)", "score": 21.6872005463, "published": true}], "hash": "6cbb64b050813e75e16947469a73ada0", "id": 6}, {"size": 3, "snippet_links": [{"key": "any-loss", "type": "definition", "offset": [0, 8]}, {"key": "arising-out-of", "type": "definition", "offset": [9, 23]}, {"key": "in-connection-with", "type": "clause", "offset": [27, 45]}, {"key": "failure-of-the-borrower", "type": "clause", "offset": [46, 69]}, {"key": "interest-due", "type": "clause", "offset": [110, 122]}, {"key": "a-loan", "type": "definition", "offset": [129, 135]}, {"key": "the-insured", "type": "definition", "offset": [165, 176]}, {"key": "right-to-call", "type": "clause", "offset": [191, 204]}, {"key": "a-default", "type": "definition", "offset": [252, 261]}, {"key": "term-of", "type": "clause", "offset": [278, 285]}, {"key": "amortization-period", "type": "clause", "offset": [316, 335]}, {"key": "payments-of-principal-and-interest", "type": "definition", "offset": [409, 443]}, {"key": "additional-amounts", "type": "definition", "offset": [459, 477]}, {"key": "resulting-from-the", "type": "clause", "offset": [629, 647]}, {"key": "extension-or-renewal", "type": "clause", "offset": [685, 705]}, {"key": "the-loan", "type": "clause", "offset": [742, 750]}, {"key": "market-rates", "type": "definition", "offset": [754, 766]}], "snippet": "Any Loss arising out of or in connection with failure of the Borrower to make any payment of principal and/or interest due under a Loan which payment arises because the Insured exercises its right to call or accelerate such Loan (except as a result of a Default) or because the term of such Loan is shorter than the amortization period, and which payment is for an amount more than twice the regular periodic payments of principal and interest (including any additional amounts escrowed for taxes or insurance) that are set forth in such Loan (commonly referred to as a \"Balloon Payment\"). This exclusion shall not apply to Loss resulting from the refusal of the Borrower to accept an extension or renewal from the Insured or its Servicer of the Loan at market rates.", "samples": [{"hash": "c24E2Tt9VJg", "uri": "/contracts/c24E2Tt9VJg#balloon-payment", "label": "Pooling and Servicing Agreement (Sabr Trust 2005-Fr3)", "score": 18.0, "published": true}, {"hash": "8YToRXrCzqV", "uri": "/contracts/8YToRXrCzqV#balloon-payment", "label": "Pooling and Servicing Agreement (Securitized Asset Backed Receivables LLC Trust 2005-Op2)", "score": 18.0, "published": true}], "hash": "d187a1874f1ce7e1567b0e8b50e94a4f", "id": 10}, {"size": 4, "snippet_links": [{"key": "outstanding-principal-amount", "type": "clause", "offset": [4, 32]}, {"key": "right-of-conversion", "type": "clause", "offset": [69, 88]}, {"key": "sum-of", "type": "clause", "offset": [116, 122]}, {"key": "the-borrower-shall", "type": "clause", "offset": [190, 208]}, {"key": "grace-period", "type": "clause", "offset": [232, 244]}, {"key": "with-respect-to", "type": "clause", "offset": [245, 260]}, {"key": "maturity-date-payment", "type": "definition", "offset": [261, 282]}, {"key": "transfer-to", "type": "definition", "offset": [319, 330]}, {"key": "the-holder", "type": "clause", "offset": [331, 341]}, {"key": "wire-instructions", "type": "definition", "offset": [344, 361]}, {"key": "attached-hereto-as-exhibit", "type": "definition", "offset": [363, 389]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [393, 419]}, {"key": "missed-payment", "type": "definition", "offset": [423, 437]}, {"key": "an-event-of-default", "type": "clause", "offset": [458, 477]}, {"key": "subject-to-the", "type": "clause", "offset": [479, 493]}, {"key": "cure-period", "type": "definition", "offset": [494, 505]}], "snippet": "The outstanding Principal Amount, subject to adjustment and Holder\u2019s right of conversion, shall be paid in one lump sum of __________ Dollars ([$450,000.00]) on or before the Maturity Date. The Borrower shall have a thirty (30) day grace period with respect to Maturity Date payment. Payment shall be made by bank wire transfer to the Holder\u2019s wire instructions, attached hereto as Exhibit A. For the avoidance of doubt, a missed payment shall be considered an Event of Default, subject to the cure period set forth above.", "samples": [{"hash": "7cH7wFpxvHb", "uri": "/contracts/7cH7wFpxvHb#balloon-payment", "label": "Note Agreement (American Rebel Holdings Inc)", "score": 33.4086227417, "published": true}], "hash": "1d3f1ebacdac56c1c878cea7c06e112d", "id": 8}, {"size": 3, "snippet_links": [{"key": "arising-out-of", "type": "definition", "offset": [10, 24]}, {"key": "in-connection-with", "type": "clause", "offset": [28, 46]}, {"key": "failure-of-the-borrower", "type": "clause", "offset": [51, 74]}, {"key": "interest-due", "type": "clause", "offset": [115, 127]}, {"key": "a-loan", "type": "definition", "offset": [134, 140]}], "snippet": "Any Claim arising out of or in connection with the failure of the Borrower to make any payment of principal and/or interest due under a Loan:", "samples": [{"hash": "iaizIiwpsGu", "uri": "/contracts/iaizIiwpsGu#balloon-payment", "label": "Pooling and Servicing Agreement (Option One Mortgage Loan Trust 2006-3)", "score": 19.0, "published": true}, {"hash": "hxgaY1T5Z9P", "uri": "/contracts/hxgaY1T5Z9P#balloon-payment", "label": "Pooling and Servicing Agreement (Option One Mortgage Loan Trust 2006-3)", "score": 19.0, "published": true}, {"hash": "23miMiEKRVR", "uri": "/contracts/23miMiEKRVR#balloon-payment", "label": "Pooling and Servicing Agreement (Chase Funding Loan Acquisition Trust, Series 2004-Aq1)", "score": 18.0, "published": true}], "hash": "f1b2a0ea9bd64aebeda46ec6f103cf6f", "id": 9}, {"size": 18, "snippet_links": [{"key": "not-applicable", "type": "definition", "offset": [0, 14]}], "snippet": "Not applicable.", "samples": [{"hash": "bEV9pQW3N4j", "uri": "/contracts/bEV9pQW3N4j#balloon-payment", "label": "Trust Agreement (Lehman XS Trust 2006-19)", "score": 21.0, "published": true}, {"hash": "RXh5mHUhM4", "uri": "/contracts/RXh5mHUhM4#balloon-payment", "label": "Trust Agreement (Lehman XS Trust Series 2006-Gp2)", "score": 21.0, "published": true}, {"hash": "jrB72TKfuQU", "uri": "/contracts/jrB72TKfuQU#balloon-payment", "label": "Trust Agreement (Structured Asset Securities Corp)", "score": 19.0, "published": true}], "hash": "1727ed989c7f4287136d81d78aeb960e", "id": 1}], "next_curs": "ClgSUmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjQLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhhiYWxsb29uLXBheW1lbnQjMDAwMDAwMGEMogECZW4YACAA", "clause": {"title": "Balloon Payment", "parents": [["miscellaneous", "Miscellaneous"], ["payments", "Payments"], ["monthly-payments", "Monthly Payments"], ["expenses", "Expenses"], ["representations-and-warranties-of-borrower", "REPRESENTATIONS AND WARRANTIES OF BORROWER"]], "size": 129, "children": [["generally", "Generally"], ["prepayment-fee", "Prepayment Fee"], ["application-of-prepayment-amounts", "Application of Prepayment Amounts"], ["", ""], ["security-interest", "SECURITY INTEREST"]], "id": "balloon-payment", "related": [["monthly-payment", "Monthly Payment", "Monthly Payment"], ["monthly-payments", "Monthly Payments", "Monthly Payments"], ["payment-due-date", "Payment Due Date", "Payment Due Date"], ["due-date", "Due Date", "Due Date"], ["payment-due", "Payment Due", "Payment Due"]], "related_snippets": [], "updated": "2026-05-02T06:01:41+00:00", "also_ask": ["What negotiation leverage does a balloon payment clause provide to each party?", "What essential terms must be included to ensure the balloon payment is enforceable?", "What are the main risks if the borrower cannot meet the balloon payment deadline?", "How do balloon payment clauses differ across jurisdictions or loan types?", "How have courts treated challenges to balloon payment enforceability in recent cases?"], "drafting_tip": "Specify the balloon payment amount and due date to ensure clarity; require written notice of the payment to prevent disputes; define consequences of nonpayment to enhance enforceability.", "explanation": "A Balloon Payment clause defines a loan repayment structure where smaller periodic payments are made throughout the loan term, with a large final payment due at the end. Typically, borrowers pay only interest or a portion of the principal during the loan period, and the remaining balance is paid off in one lump sum at maturity. This arrangement can make initial payments more affordable but requires the borrower to plan for a significant payment later, addressing the need for flexible cash flow management or short-term financing solutions."}, "json": true, "cursor": ""}}