break costs

break costs
United Kingdom
In the context of lending, the economic cost to a lender whenever a loan is repaid, cancelled or purchased on a date other than the last day of an interest period. A lender may incur costs as a result of meeting its matched funding obligations for the loan in the interbank market or its swap payments and fees in relation to the loan.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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