Prepayment Clause

Prepayment Clause
A prepayment clause is a provision in a bond or mortgage that allows the borrower to pay off the loan before its scheduled due date. In some cases, there may be penalties for prepayment, such as the waiver of interest that is not yet due.
Prepayment Privilege
Prepayment privilege refers to the right of a borrower to repay a loan before its scheduled maturity date without incurring penalties.

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