Required Principal Prepayments; Payment at Maturity Clause Samples

The "Required Principal Prepayments; Payment at Maturity" clause mandates that the borrower must make certain principal payments before the loan's scheduled maturity date, as well as pay any remaining principal balance when the loan matures. In practice, this clause may specify scheduled prepayment amounts or trigger prepayments under certain conditions, such as asset sales or excess cash flow, and then require full repayment of any outstanding principal at the end of the loan term. Its core function is to ensure that the lender receives timely reductions of principal and is fully repaid by the maturity date, thereby managing credit risk and providing repayment certainty.