Non-Prime Loan definition

Non-Prime Loan means a Loan for which the APR is equal to or greater than two and one-half percentage points (2.5%) for first-lien loans or five percentage points (5%) for subordinate-lien loans above the Treasury yield for securities of a comparable period of maturity as of the fifteenth day of the month in which the interest rate on the Loan is set. Following receipt of the first Monitor’s Report, due on March 31, 2007, and again upon receipt of the second Monitor’s Report, due on March 31, 2008, the Compliance Committee shall renegotiate this provision in good faith with ACCCH and the Ameriquest Parties, taking into account the Ameriquest Parties’ record of compliance reflected in the Monitor’s Reports and any other relevant information. In these negotiations, the parties may agree to increase or decrease the margin over Treasury yield or they may agree to a different standard entirely.
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Examples of Non-Prime Loan in a sentence

  • If the proposed Non-Prime Loan includes a Prepayment Penalty, Ameriquest Sales Personnel shall make an oral disclosure in substantially the following form: “This loan contains a prepayment penalty.

  • If the proposed Non-Prime Loan includes an Adjustable Rate Mortgage and the payment of Discount Points, Ameriquest Sales Personnel shall provide an oral disclosure in substantially the following form: “This loan includes a payment of [insert the number] discount points, a $[insert the amount of the discount points in dollars] fee you will pay at closing to lower your initial interest rate and monthly payment.

  • If the proposed Non-Prime Loan includes a fixed rate mortgage and provides for the payment of Discount Points, Ameriquest Parties’ Sales Personnel shall provide an oral disclosure in substantially the following form: “This loan includes payment of [insert number] discount points, a fee you pay at closing that reduces the interest rate on your loan and also the amount of your monthly payment but increases the total amount of your loan.

  • The Ameriquest Parties shall use an Independent Loan Closer for all of their Non-Prime Loan Closings.

  • If the proposed Non-Prime Loan includes an Adjustable Rate Mortgage, Ameriquest Parties’ Sales Personnel shall provide an oral disclosure in substantially the following form: “The loan we have been discussing is an adjustable rate loan for $[insert loan amount], with an initial interest rate of [insert initial interest rate]%.

  • If any such conversion or repayment of a Non-Prime Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 2.16.