A provision that allows prepayment provided full interest is paid as if the loan had gone to maturity; the borrower is locked-in as to interest.
A clause in a loan agreement that prevents the borrower from repaying the loan until a specified date.
A condition in a promissory note that prohibits prepayment of the note.
A mortgage provision that prohibits prepayment of the loan during a portion or the entire term of a loan. The purpose of such mortgage agreements, also known as prepayment prohibitions,is to ensure that the lender receives its anticipated yield during the lock-in period.
Clause in a loan agreement that states that the borrower cannot repay a loan prior to a specified date.
This is a clause in the mortgage agreement which stipulates that the borrower cannot repay a loan prior to a specified date.
A clause in a contract stating that the buyer (borrower) can not pay off the loan in advance.