MAY Prepay Clause Samples
The "MAY Prepay" clause grants a party the right to make payments ahead of the scheduled due dates without penalty. In practice, this means a borrower can pay off part or all of a loan before the maturity date, potentially reducing the total interest paid. This clause provides flexibility for the paying party and removes barriers to early repayment, ultimately benefiting those who wish to manage their debt more efficiently or take advantage of improved financial circumstances.
MAY Prepay. The Borrower can prepay without penalty all or a portion of the Principal Amount and interest earlier than it is due. Partial prepayment will not postpone the Due Date of any subsequent payment or change the payment amount unless the Lender otherwise agrees in writing. Prepayments will first be applied to the interest calculated at the Interest Rate, and second to the Principal Amount. ☐ - May NOT Prepay.