Repaymentprepayment

This clause describes how and when the borrower must repay the facility. There are many repayment possibilities and, usually, repayment is structured to match the borrower's projected ability to repay. Some facility letters may require a borrower to make scheduled repayments of principal and interest throughout the term of any facility. Other facility letters may require a borrower to make regular scheduled repayments of interest but with the principal amount of the facility only falling due for repayment in a single bullet repayment at the end of term. Alternatively, other facilities may require a combination of these options.

Many facility letters will also include an option for the borrower to 'pre-pay' the facility. Pre-payment differs from repayment in that repayment relates to scheduled repayments of the facility. Prepayment refers to early repayment of a facility. Some facilities may permit the borrower to pre-pay the facility either in whole or in part, prior to the anticipated repayment dates. A bank will always specify terms and conditions that may apply to pre-payment.

Was this article helpful?

0 0
Film Making

Film Making

If you have ever wanted the secrets to making your own film, here it is: Indy Film Insider Tips And Basics To Film Making. Have you ever wanted to make your own film? Is there a story you want to tell? You might even think that this is impossible. Studios make films, not the little guy. This is probably what you tell yourself. Do you watch films with more than a casual eye? You probably want to know how they were able to get perfect lighting in your favorite scene, or how to write a professional screenplay.

Get My Free Ebook


Post a comment