Fixed Rate Prepayment Premium Clause Samples
The Fixed Rate Prepayment Premium clause requires a borrower to pay an additional fee if they repay a fixed-rate loan before its scheduled maturity. This premium is typically calculated as a percentage of the outstanding principal or as a formula reflecting the lender’s potential loss from early repayment. By imposing this cost, the clause compensates the lender for lost interest income and discourages borrowers from refinancing when interest rates drop, thereby protecting the lender’s expected return.
Fixed Rate Prepayment Premium. Subject to Section 7.2 of this Agreement, each Fixed Rate Loan shall be documented using F▇▇▇▇▇▇ Mac's then-current form "Fixed Rate" Multifamily Note ("Form Fixed Rate Note"). Each Fixed Rate Loan shall be subject to payment of a prepayment premium upon prepayment prior to the last three (3) months of the term of such Fixed Rate Loan as more fully described in the applicable Form Fixed Rate Note.
Fixed Rate Prepayment Premium. See §3.2.2(b). Floating Rate Loan. Any Loan advanced hereunder other than a Fixed Rate Loan. Floating Rate Prepayment Lockout Period. See §3.2.1(b).