mandatory prepayment provision
- mandatory prepayment provision
A provision in debt instruments that requires the borrower to prepay a portion of the debt with certain proceeds if and when received before the maturity date. In leveraged loan agreements it is typical for lenders to require prepayments and reductions of the revolving facility on a change of control and with proceeds of asset dispositions, equity issuances, incurrence of insurance payments, and excess cash flow. Generally, the payment is first applied to prepay term loans and second to permanently reduce any revolving loans.
Practical Law Dictionary. Glossary of UK, US and international legal terms.
Look at other dictionaries:
mandatory prepayment — On a management buyout or under a loan, it is conventional for banks to require prepayment of amounts lent in certain events, for example, on the disposal of assets, change of control, insurance payments, receipts of payment under warranties… … Law dictionary
optional prepayment — USA A provision in loan agreements that allows the borrower to prepay all or a portion of the outstanding loans at any time before maturity. In some loan agreements optional prepayments may be subject to a prepayment penalty. For more information … Law dictionary
Dodd–Frank Wall Street Reform and Consumer Protection Act — Full title An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers… … Wikipedia
List of Statutory Instruments of the United Kingdom, 2006 — This is an incomplete list of Statutory Instruments of the United Kingdom in 2006. NOTOC 1 100* Public Contracts Regulations 2006 S.I. 2006/5 * Utilities Contracts Regulations 2006 S.I. 2006/6 * M6 Motorway (Junction 36, Town Head Bridge Parapet… … Wikipedia
insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… … Universalium