PERMISSIVE PREPAYMENT Clause Samples
A Permissive Prepayment clause allows a borrower to repay all or part of a loan before its scheduled maturity date without incurring penalties or fees. In practice, this means the borrower can make extra payments or pay off the entire outstanding balance at any time, providing flexibility to reduce interest costs or manage debt more efficiently. The core function of this clause is to give borrowers financial freedom and control, while eliminating the risk of punitive charges for early repayment.
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PERMISSIVE PREPAYMENT. Borrower may prepay all or any part of the Loans at any time without premium or penalty.
PERMISSIVE PREPAYMENT. [OPTIONAL]
(a) With the prior written approval of FINRA, the Broker/Dealer may, at its option, but not at the option of the Lender, make a payment of all or any portion of the principal amount hereof to the Lender prior to the Scheduled Maturity Date (hereinafter referred to as a “Prepayment”) at any time subsequent to one year from the effective date of this Agreement. However, no Prepayment shall be made if, after giving effect thereto (and to all other payments of principal of outstanding subordination agreements of the Broker/Dealer, including the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer, the maturity or accelerated maturity of which are scheduled to occur within six months after the date such Prepayment is to occur pursuant to the provisions of this paragraph, or on or prior to the Scheduled Maturity Date for payment of the principal amount hereof disregarding this paragraph, whichever date is earlier) without reference to any projected profit or loss of the Broker/Dealer, any of the following circumstances apply at the time Prepayment is to be made:
(i) in the event that the Broker/Dealer is not operating pursuant to the Alternative Net Capital Requirement, the aggregate indebtedness of the Broker/Dealer would exceed 1000 percent of its net capital as those terms are defined in the Rule or any successor rule in effect (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or
(ii) in the event that the Broker/Dealer is operating pursuant to the Alternative Net Capital Requirement, the net capital of the Broker/Dealer would be less than 5 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule in effect, or
(iii) the Broker/Dealer’s net capital, as defined in the Rule or any successor rule in effect, would be less than 120 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or
(iv) in the event that the Broker/Dealer is subject to the provisions of paragraph (a)(6)(v) or (c)(2)(x)(C) of the Ru...
PERMISSIVE PREPAYMENT. The Credit Line Advances may be prepaid in whole or in part at the option of Borrower and without premium or penalty, provided, however, that any partial prepayment shall be in multiple amounts of ten thousand dollars.
PERMISSIVE PREPAYMENT. This Note and all indebtedness arising in connection herewith may be prepaid at any time and from time to time in whole or in part by Maxxon without premium, penalty or other charges or fees whatsoever.