{"component": "clause", "props": {"groups": [{"samples": [{"hash": "68LJ48E4kmi", "uri": "/contracts/68LJ48E4kmi#discount-notes", "label": "Revolving Credit and Term Loan Agreement (Petro Stopping Centers Holdings Lp)", "score": 18.0, "published": true}, {"hash": "17LTrhtcg7A", "uri": "/contracts/17LTrhtcg7A#discount-notes", "label": "Revolving Credit and Term Loan Agreement (Petro Stopping Centers L P)", "score": 18.0, "published": true}], "snippet": "The 15% Senior Discount Notes due August 1, 2008 in the -------------- aggregate original principal amount of not more than $55,600,000 issued by Holdings and Petro Holdings Financial pursuant to the Discount Notes Indenture and in the form delivered to the Agent prior to the Original Closing Date. Discount Notes Indenture. The Indenture dated on or prior to the Original ------------------------ Closing Date, among Holdings, Petro Holdings Financial and the Trustee, in the form delivered to the Agent on or prior to the Original Closing Date.", "size": 3, "snippet_links": [{"key": "senior-discount-notes", "type": "definition", "offset": [8, 29]}, {"key": "aggregate-original-principal-amount", "type": "definition", "offset": [71, 106]}, {"key": "by-holdings", "type": "clause", "offset": [143, 154]}, {"key": "petro-holdings", "type": "definition", "offset": [159, 173]}, {"key": "pursuant-to-the", "type": "clause", "offset": [184, 199]}, {"key": "discount-notes-indenture", "type": "definition", "offset": [200, 224]}, {"key": "the-agent", "type": "clause", "offset": [254, 263]}, {"key": "original-closing-date", "type": "definition", "offset": [277, 298]}, {"key": "the-indenture", "type": "clause", "offset": [326, 339]}, {"key": "the-trustee", "type": "clause", "offset": [458, 469]}], "hash": "419b5fa19fd698aad665d7ff4f92e108", "id": 7}, {"samples": [{"hash": "hdduNmZhnEb", "uri": "/contracts/hdduNmZhnEb#discount-notes", "label": "Omnibus Instrument (Protective Life Insurance Co)", "score": 21.0, "published": true}, {"hash": "g6HqaR4a7xs", "uri": "/contracts/g6HqaR4a7xs#discount-notes", "label": "Omnibus Instrument (Protective Life Insurance Co)", "score": 21.0, "published": true}, {"hash": "dm3kGsTgKs1", "uri": "/contracts/dm3kGsTgKs1#discount-notes", "label": "Omnibus Instrument (Protective Life Insurance Co)", "score": 21.0, "published": true}], "snippet": "If this Note is specified on the face hereof as a \u201cDiscount Note,\u201d this Note shall bear interest at the rate set forth on the face hereof in the same manner as set forth in Section 3(a) above, and payments of principal and interest shall be made as set forth on the face hereof.", "size": 9, "snippet_links": [{"key": "this-note", "type": "clause", "offset": [3, 12]}, {"key": "discount-note", "type": 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accretion of principal of that Tranche of Notes from and including the prior Monthly Principal Accrual Date in the related Monthly Period (or in the case of the first Monthly Principal Accrual Date with respect to any Tranche of Discount Notes, from and including the date of issuance of that Tranche of Notes) to but excluding the first Monthly Principal Accrual Date for the next month.", "size": 4, "snippet_links": [{"key": "the-deposit", "type": "clause", "offset": [0, 11]}, {"key": "distribution-date", "type": "definition", "offset": [73, 90]}, {"key": "principal-of", "type": "definition", "offset": [121, 133]}, {"key": "tranche-of-notes", "type": "definition", "offset": [139, 155]}, {"key": "monthly-principal-accrual-date", "type": "definition", "offset": [185, 215]}, {"key": "related-monthly-period", "type": "definition", "offset": [223, 245]}, {"key": "in-the-case", "type": "clause", "offset": [250, 261]}, {"key": "with-respect-to", "type": "clause", "offset": [306, 321]}, {"key": "date-of-issuance", "type": "definition", "offset": [376, 392]}, {"key": "but-excluding", "type": "clause", "offset": [422, 435]}], "hash": "55e54a7e526e71ccb41bb4d5a3517019", "id": 4}, {"samples": [{"hash": "cIAR0NhOj8l", "uri": "/contracts/cIAR0NhOj8l#discount-notes", "label": "Revolving Credit Agreement (Source One Mortgage Services Corp)", "score": 18.0, "published": true}, {"hash": "5KiRNJHBoy2", "uri": "/contracts/5KiRNJHBoy2#discount-notes", "label": "Revolving Credit Agreement (Source One Mortgage Services Corp)", "score": 18.0, "published": true}, {"hash": "1YO8DUQ24Fg", "uri": "/contracts/1YO8DUQ24Fg#discount-notes", "label": "Revolving Credit Agreement (Source One Mortgage Services Corp)", "score": 18.0, "published": true}], "snippet": "The Discount Loans owing to each Lender shall be evidenced by a single master promissory note of the Company in the full amount of such Lender's Commitment, substantially in the form of Exhibit E-2 (a \"Discount Note\") executed and delivered prior to the initial Discount Advance, payable to the order of such Lender and representing from time to time the obligation of the Company to pay the aggregate Face Amount of all Discount Loans then owed to such Lender.", "size": 3, "snippet_links": [{"key": "each-lender", "type": "clause", "offset": [28, 39]}, {"key": "master-promissory-note", "type": "definition", "offset": [71, 93]}, {"key": "company-in", "type": "clause", "offset": [101, 111]}, {"key": "form-of", "type": "definition", "offset": [178, 185]}, {"key": "exhibit-e-2", "type": "definition", "offset": [186, 197]}, {"key": "discount-note", "type": "definition", "offset": [202, 215]}, {"key": "executed-and-delivered", "type": "clause", "offset": [218, 240]}, {"key": "prior-to-the", "type": "clause", "offset": [241, 253]}, {"key": "initial-discount", "type": "definition", "offset": [254, 270]}, {"key": "payable-to", "type": "definition", "offset": [280, 290]}, {"key": "order-of", "type": "clause", "offset": [295, 303]}, {"key": "from-time-to-time", "type": "clause", "offset": [333, 350]}, {"key": "obligation-of-the-company", "type": "clause", "offset": [355, 380]}, {"key": "to-pay", "type": "clause", "offset": [381, 387]}, {"key": "aggregate-face-amount", "type": "definition", "offset": [392, 413]}], "hash": "efc0808cdf99cf725b344f26d6063d12", "id": 5}, {"samples": [{"hash": "951YNKntjtp", "uri": "/contracts/951YNKntjtp#discount-notes", "label": "Credit Agreement (MDC Partners Inc)", "score": 18.0, "published": true}], "snippet": "A Non-Acceptance Lender may require the Borrower to issue a Discount Note to the Non-Acceptance Lender, in lieu of a Draft, and such Non-Acceptance Lender shall, in lieu of accepting and purchasing Acceptances pursuant to Section 5.5 or making BA Equivalent Advances under Section 5.10, purchase Discount Notes upon the same terms and conditions as apply to purchases of Acceptances. For the purposes of this Agreement each reference to Acceptances shall be deemed to include, where relevant, Discount Notes, with the necessary changes being made to fit the context.", "size": 2, "snippet_links": [{"key": "a-non", "type": "clause", "offset": [0, 5]}, {"key": "lender-may", "type": "definition", "offset": [17, 27]}, {"key": "the-borrower", "type": "definition", "offset": [36, 48]}, {"key": "to-issue", "type": "clause", "offset": [49, 57]}, {"key": "note-to", "type": "definition", "offset": [69, 76]}, {"key": "the-non", "type": "clause", "offset": [77, 84]}, {"key": "in-lieu-of", "type": "clause", "offset": [104, 114]}, {"key": "section-55", "type": "clause", "offset": [222, 233]}, {"key": "ba-equivalent-advances", "type": "clause", "offset": [244, 266]}, {"key": "purchase-discount", "type": "definition", "offset": [287, 304]}, {"key": "same-terms-and-conditions", "type": "clause", "offset": [320, 345]}, {"key": "for-the-purposes-of-this-agreement", "type": "clause", "offset": [384, 418]}, {"key": "reference-to", "type": "definition", "offset": [424, 436]}, {"key": "where-relevant", "type": "clause", "offset": [477, 491]}, {"key": "necessary-changes", "type": "clause", "offset": [518, 535]}, {"key": "the-context", "type": "clause", "offset": [554, 565]}], "hash": "06be1d37bf140b5a185e10dcf3feb0e0", "id": 10}, {"samples": [{"hash": "zeS8bzkIZb", "uri": "/contracts/zeS8bzkIZb#discount-notes", "label": "Global Note (Principal Life Insurance Co)", "score": 20.0, "published": true}, {"hash": "zVM5d9x6mz", "uri": "/contracts/zVM5d9x6mz#discount-notes", "label": "Indenture (Principal Life Insurance Co)", "score": 20.0, "published": true}, {"hash": "wsBeyUfitl", "uri": "/contracts/wsBeyUfitl#discount-notes", "label": "Global Note (Principal Life Insurance Co)", "score": 20.0, "published": true}], "snippet": "If this Note is specified on the face hereof as a \u201cDiscount Note\u201d:", "size": 418, "snippet_links": [{"key": "this-note", "type": "clause", "offset": [3, 12]}, {"key": "discount-note", "type": "definition", "offset": [51, 64]}], "hash": "8852071fd9b4a2759818abb3da1dfa5b", "id": 1}, {"samples": [{"hash": "k9Z2ZwSVGlP", "uri": "/contracts/k9Z2ZwSVGlP#discount-notes", "label": "Baseries Indenture Supplement (BA Credit Card Trust)", "score": 26.9603011636, "published": true}, {"hash": "9zx1iQ7Ioqw", "uri": "/contracts/9zx1iQ7Ioqw#discount-notes", "label": "Indenture Supplement (BA Master Credit Card Trust II)", "score": 26.9219712526, "published": true}, {"hash": "7xo3rzTkeSi", "uri": "/contracts/7xo3rzTkeSi#discount-notes", "label": "Indenture Supplement (BA Master Credit Card Trust II)", "score": 25.7474332649, "published": true}], "snippet": "The deposit targeted for a tranche of Outstanding Discount Notes on each Transfer Date is equal to the amount of accretion of principal of that tranche of Notes from the Monthly Principal Accrual Date in the related Monthly Period (or in the case of the first Transfer Date with respect to any tranche of Notes, from the date of issuance of that tranche of Notes) to but excluding the Monthly Principal Accrual Date for the next month.", "size": 7, "snippet_links": [{"key": "the-deposit", "type": "clause", "offset": [0, 11]}, {"key": "equal-to", "type": "definition", "offset": [90, 98]}, {"key": "principal-of", "type": "definition", "offset": [126, 138]}, {"key": "tranche-of-notes", "type": "definition", "offset": [144, 160]}, {"key": "monthly-principal-accrual-date", "type": "definition", "offset": [170, 200]}, {"key": "related-monthly-period", "type": "definition", "offset": [208, 230]}, {"key": "in-the-case", "type": "clause", "offset": [235, 246]}, {"key": "first-transfer-date", "type": "definition", "offset": [254, 273]}, {"key": "with-respect-to", "type": "clause", "offset": [274, 289]}, {"key": "date-of-issuance", "type": "definition", "offset": [321, 337]}, {"key": "but-excluding", "type": "clause", "offset": [367, 380]}], "hash": "9ba53f3d7b34cc0008518530a915a3fd", "id": 3}, {"samples": [{"hash": "gIahwRx6ACe", "uri": "/contracts/gIahwRx6ACe#discount-notes", "label": "Omnibus Instrument (Principal Life Insurance Co)", "score": 18.0, "published": true}, {"hash": "Hz5i3iUDek", "uri": "/contracts/Hz5i3iUDek#discount-notes", "label": "Omnibus Instrument (Principal Life Insurance Co)", "score": 18.0, "published": true}, {"hash": "3aLdwTz4h4L", "uri": "/contracts/3aLdwTz4h4L#discount-notes", "label": "Omnibus Instrument (Principal Life Insurance Co)", "score": 18.0, "published": true}], "snippet": "If this Note is specified on the face hereof as a \"Discount Note\":\n(i) Principal and Interest. This Note will bear interest in the same manner as set forth in Section 3(a) above, and payments of principal and interest shall be made as set forth on the face hereof. Discount Notes may not bear any interest currently or may bear interest at a rate that is below market rates at the time of issuance. The difference between the Issue Price of a Discount Note and par is referred to as the \"Discount\".", "size": 3, "snippet_links": [{"key": "this-note", "type": "clause", "offset": [3, 12]}, {"key": "in-the-same-manner", "type": "definition", "offset": [124, 142]}, {"key": "payments-of-principal-and-interest", "type": "definition", "offset": [183, 217]}, {"key": "market-rates", "type": "definition", "offset": [361, 373]}, {"key": "time-of-issuance", "type": "clause", "offset": [381, 397]}, {"key": "issue-price", "type": "clause", "offset": [426, 437]}], "hash": "3bab7e2c2edfbae6ec757154caf34b6a", "id": 6}, {"samples": [{"hash": "ejTZEiGTWX5", "uri": "/contracts/ejTZEiGTWX5#discount-notes", "label": "Indenture", "score": 19.0, "published": true}, {"hash": "lf7NOmc2Ple", "uri": "/contracts/lf7NOmc2Ple#discount-notes", "label": "Indenture (Citibank Credit Card Issuance Trust)", "score": 18.0, "published": true}], "snippet": "Unless otherwise specified in the applicable terms document, in the case of a tranche of Outstanding Discount Notes (other than any tranche of RSP Notes), the deposit targeted for that tranche of Notes with respect to any Due Period is equal to the amount of accretion of principal of that tranche of Notes from the Monthly Principal Date in that Due Period (or in the case of the first Monthly Principal Date, from the date of issuance of that tranche) to the first Monthly Principal Date after the end of that Due Period, multiplied by the Adjustment Ratio for that tranche as of the last day of such Due Period. Unless an earlier date is determined pursuant to Section 522, these deposits will be made on each Monthly Principal Date for the applicable tranche.", "size": 2, "snippet_links": [{"key": "unless-otherwise-specified-in", "type": "clause", "offset": [0, 29]}, {"key": "terms-document", "type": "definition", "offset": [45, 59]}, {"key": "in-the-case", "type": "clause", "offset": [61, 72]}, {"key": "rsp-notes", "type": "definition", "offset": [143, 152]}, {"key": "the-deposit", "type": "clause", "offset": [155, 166]}, {"key": "tranche-of-notes", "type": "definition", "offset": [185, 201]}, {"key": "with-respect-to", "type": "clause", "offset": [202, 217]}, {"key": "due-period", "type": "definition", "offset": [222, 232]}, {"key": "equal-to", "type": "definition", "offset": [236, 244]}, {"key": "principal-of", "type": "definition", "offset": [272, 284]}, {"key": "monthly-principal-date", "type": "definition", "offset": [316, 338]}, {"key": "date-of-issuance", "type": "definition", "offset": [420, 436]}, {"key": "adjustment-ratio", "type": "definition", "offset": [542, 558]}, {"key": "day-of", "type": "clause", "offset": [591, 597]}, {"key": "pursuant-to-section", "type": "definition", "offset": [652, 671]}, {"key": "applicable-tranche", "type": "definition", "offset": [744, 762]}], "hash": "eaec04439c199cfeb077be673d1fa373", "id": 8}, {"samples": [{"hash": "lvQyxMDR0yq", "uri": "/contracts/lvQyxMDR0yq#discount-notes", "label": "Credit Agreement (Sealy Corp)", "score": 18.0, "published": true}, {"hash": "jmEVKZoDBw8", "uri": "/contracts/jmEVKZoDBw8#discount-notes", "label": "Credit Agreement (Sealy Corp)", "score": 18.0, "published": true}], "snippet": "On or before the Closing Date, Company shall -------------- have issued and sold for Cash Discount Notes providing net Cash proceeds to Company of not less than $75,000,000.", "size": 2, "snippet_links": [{"key": "or-before-the-closing-date", "type": "clause", "offset": [3, 29]}, {"key": "cash-discount", "type": "definition", "offset": [85, 98]}, {"key": "net-cash-proceeds", "type": "definition", "offset": [115, 132]}, {"key": "to-company", "type": "definition", "offset": [133, 143]}], "hash": "00fbb5e53e9031c92fedebdbf9dbbb5b", "id": 9}], "next_curs": "ClcSUWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjMLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhdkaXNjb3VudC1ub3RlcyMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"children": [["redemption-repayment-acceleration", "Redemption; Repayment; Acceleration"], ["principal-and-interest", "Principal and Interest"], ["issue-price", "Issue Price"], ["rates-of-interest", "Rates of Interest"], ["payments-at-maturity-of-certain-discount-notes", "Payments at Maturity of Certain Discount                     Notes"]], "parents": [["determination-of-interest-rate-and-certain-other-terms", "Determination of Interest Rate and Certain Other Terms"], ["targeted-deposits-to-the-interest-funding-account", "Targeted Deposits to the Interest Funding Account"], ["governing-law", "GOVERNING LAW"], ["targeted-deposits-of-card-series-finance-charge-amounts-to-the-interest-funding-account", "Targeted Deposits of Card Series Finance Charge Amounts to the Interest Funding Account"], ["allocations-deposits-and-payments", "Allocations, Deposits and Payments"]], "size": 473, "title": "Discount Notes", "id": "discount-notes", "related": [["subordinated-notes", "Subordinated Notes", "Subordinated Notes"], ["fixed-rate-notes", "Fixed Rate Notes", "Fixed Rate Notes"], ["special-notes", "Special Notes", "Special Notes"], ["floating-rate-notes", "Floating Rate Notes", "Floating Rate Notes"], ["revolver-notes", "Revolver Notes", "Revolver Notes"]], "related_snippets": [], "updated": "2025-07-07T12:37:40+00:00", "also_ask": ["What are the key negotiation levers when setting discount rates and maturity terms?", "Which essential provisions must be included to protect the issuer and noteholder?", "What are the most common legal pitfalls or enforceability risks in discount note structures?", "How do discount notes compare to traditional interest-bearing notes in terms of legal treatment and risk allocation?", "What factors most influence a court\u2019s willingness to enforce discount note repayment terms?"], "drafting_tip": "Specify discount calculation methods to prevent disputes, define eligibility criteria to ensure clarity, and set payment terms to facilitate timely compliance.", "explanation": "The \"Discount Notes\" clause defines the terms under which certain debt instruments, known as discount notes, are issued and managed. These notes are typically sold at a price below their face value and do not pay periodic interest; instead, the investor receives the full face value at maturity, with the difference representing the interest earned. This clause outlines the calculation of the discount, the maturity period, and any conditions related to early redemption or transfer. Its core practical function is to provide a clear framework for the issuance and repayment of discount notes, ensuring both parties understand the financial implications and obligations involved."}, "json": true, "cursor": ""}}