Definitions from the Web
Mandatory Prepayment
Description:
Mandatory prepayment refers to a requirement for payment or settlement of a debt or obligation before its agreed-upon due date or term.
Senses:
- Sense 1 (Finance): In finance, mandatory prepayment is commonly associated with loans, mortgages, or financial instruments where borrowers are obligated to make a scheduled payment before the predetermined maturity date.
- Sense 2 (Services): In the service industry, mandatory prepayment may denote a condition where payment is required in advance for availing services, such as hotels, event bookings, or reservations.
Sample Sentences:
- Sense 1:
- - The loan agreement imposed a mandatory prepayment of 10% of the outstanding balance each year.
- - By making a mandatory prepayment, the borrower reduced their overall interest payments.
- - Investors were provided with the option to make voluntary prepayments in addition to the mandatory prepayment schedule.
- Sense 2:
- - The hotel requires a mandatory prepayment of one night's stay to confirm the reservation.
- - The event organizer requested a mandatory prepayment to secure the tickets for the concert.
- - Due to several no-shows, the restaurant now enforces a mandatory prepayment policy for large group bookings.
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