Prepayment Privilege Clause Samples
The Prepayment Privilege clause allows a borrower to pay off all or part of a loan before its scheduled maturity date without incurring penalties. In practice, this means the borrower can make additional payments or fully settle the outstanding balance ahead of time, which can reduce the total interest paid over the life of the loan. This clause provides flexibility for borrowers who may come into extra funds or wish to refinance, and it removes the financial barrier of prepayment penalties, ultimately encouraging early repayment and reducing the lender's risk of default.
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Prepayment Privilege. The indebtedness evidenced hereby may be prepaid in accordance with the provisions of this Section, the express provisions of the Loan Agreement, and not otherwise.
(a) Prior to December 31, 2012, this Note may not be prepaid, except as may be expressly provided for in the Loan Agreement.
(b) Beginning on January 1, 2013, Borrower may prepay this Note in whole or in part, subject to subsection 8(c) below, provided such prepayment is accompanied by a reinvestment charge (hereinafter referred to as the “Reinvestment Charge”). The Reinvestment Charge shall be an amount equal to (i) two percent (2.0%) of the principal amount prepaid with respect to prepayments made between January 1, 2013 and December 31, 2013, (ii) one percent (1.0%) of the principal amount prepaid with respect to prepayments made between January 1, 2014 through December 31, 2014, and (iii) zero percent (0%) of the principal amount prepaid with respect to prepayments made after December 31, 2014.
(c) Notwithstanding the above, the Borrower shall not prepay a portion of this Note in an amount that would result in the remaining principal balance being less than $500,000 (but this shall not limit the Borrower's right to prepay the whole amount of this Note).
(d) Any prepayment shall be made only upon not less than fifteen (15) days' advance written notice to the Lender.”
Prepayment Privilege. Maker may prepay this Note in whole or in part at any time.
Prepayment Privilege. (a) Borrower may prepay this Note in full, but not in part (except pursuant to the express terms of the Loan Agreement of even date herewith between Lender and Borrower and certain Affiliates of Borrower (the “Loan Agreement”)), provided ▇▇▇▇▇▇▇▇ gives to Lender at least twenty (20) days’ prior written notice of such intent and provided further that such prepayment is accompanied by all accrued interest, all other fees and costs due Lender hereunder (if any), and a prepayment premium equal to the greater of:
(i) one percent (1%) of the principal balance of the Loan on the date of prepayment; or
(ii) the difference between (1) the discounted value of all required monthly payments for the remaining term of the Loan plus the discounted value of the principal balance of the Loan at maturity, such discounted value to be calculated using a discount rate based on the monthly equivalent yield-to-maturity rate of a United States Treasury Note or Bond plus fifty (50) basis points, and (2) the principal balance of the Loan on the date of prepayment. The “monthly equivalent yield-to-maturity rate” shall be predicated on the then current yield (as distinct from the interest rate) on the United States Treasury Note or Bond having the closest maturity to the Maturity Date, as shown in The Wall Street Journal or, if The Wall Street Journal is no longer published, a similar daily financial publication of national circulation selected by ▇▇▇▇▇▇, on the fifth (5th) business day prior to prepayment.
(b) No prepayment premium shall be due during the last one hundred eighty (180) days of the term of the Loan or, provided no Event of Default then exists, upon prepayment of the Loan in connection with the application of condemnation or insurance proceeds in accordance with the Loan Agreement.
(c) After an Event of Default and following the acceleration of this Note to maturity by reason thereof, a tender of payment of the amount necessary to satisfy the entire indebtedness secured hereby, made at any time prior to foreclosure sale, by Borrower or by anyone on behalf of Borrower, shall constitute an evasion of the prepayment privilege and shall be deemed to be a voluntary prepayment hereunder and such payment, to the extent permitted by law, will therefore include the premium required under the prepayment privilege set forth above.
(d) Borrower shall have no prepayment privileges except as set forth in this Paragraph 2.
(e) Borrower agrees that (i) the prepayment premium provided ...
Prepayment Privilege. The Payor shall have the right to prepay the Payment Amount in full satisfaction of this Note in whole but not in part, at any time with no prepayment penalty whatsoever.
Prepayment Privilege. The indebtedness evidenced hereby may be prepaid in whole or in part at any time without premium or penalty. The Borrower shall provide the Lender with not less than fifteen (15) nor more than one hundred twenty (120) days prior written notice of any prepayment of the Loan.
Prepayment Privilege. Borrower may prepay without penalty any portion of, or the entire, outstanding balance due under this Agreement; provided, however, that Borrower may not make prepayments until funds are released to Borrower under any Series Supplement(s).
Prepayment Privilege. This Note may be prepaid at any time, without premium or penalty.
Prepayment Privilege. The following prepayment privileges may be used in the same year. The exercising of either privilege will not affect any of the Borrower's obligations under this Mortgage including the continuing regular loan payments as to Indebtedness or due date. Privileges are not cumulative and may not be carried over from one year to the next.
Prepayment Privilege. Prepayment of the Loan in full or in part shall be permitted at any time during the Loan term upon not less than thirty (30) days and not more than sixty (60) days prior written notice to Mezzanine Lender, provided, however, that prepayment of the Loan in full shall be required in the event the First Mortgage Loan is prepaid in full.
Prepayment Privilege. Mortgagor may prepay the principal of the Loans at the times, to the extent and in the manner set forth in the Loan Agreement.