FT MarketWatch

Prior redemption privilege

A clause in some loans allowing the borrower to pay off the Debt prior to its Due date without incurring a Penalty. This is an advantage for a borrower when Interest rates are falling, since he/she can pay off the existing Loan and then refinance at a more favorable rate. also called Prepayment privilege.

Related Terms: 18 Borrow, Call, Debt, Due date, Finance, FIN, Interest, Inc., Interest rate, ITS, Loan, Leg, Low, Owe, Penalty, Prepayment, Prepayment privilege, Ring
Other Related Pages: Category: Lending_and_Credit Starting With: P
Semi Related Terms: 646 CLICK HERE TO VIEW