PREPAYMENT CLAUSE
prepayment clause. A loan-document provision that permits a borrower to satisfy a debt before its due date, usu. without paying a penalty. [Cases: Bills and Notes 129, 429. C.J.S. Bills and Notes; Letters of Credit ¡ì¡ì 86¨C89, 91¨C100, 234¨C236, 238.]
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