Initial notional balance Sample Clauses
The 'Initial notional balance' clause defines the starting principal amount or reference value used in a financial contract, such as a loan, swap, or other derivative. This amount serves as the basis for calculating payments, interest, or other financial obligations throughout the life of the agreement. For example, in an interest rate swap, the initial notional balance determines the amounts on which interest payments are exchanged between parties. The core function of this clause is to establish a clear and agreed-upon reference point for all subsequent calculations, ensuring both parties have a mutual understanding of the contract's financial foundation.
Initial notional balance. The Class A-IO Certificates are interest-only certificates; they will not be entitled to payments of principal. Interest will accrue on each component of the Class A-IO Certificates at a variable rate as described in the Prospectus Supplement.