Common use of PREPAYMENT TERMS Clause in Contracts

PREPAYMENT TERMS. Borrower may prepay principal of the Credit as follows: If the original Credit amount is $10,000 or more, and there are (12) months or more remaining until maturity, Borrower shall pay to Bank a prepayment fee equal to (i) 5% of the amount prepaid if the remaining term is five or more years, (ii) 4% of the amount prepaid if the remaining term is four to five years, (iii) 3% of the amount prepaid if the remaining term is three to four years, (iv) 2% of the amount prepaid if the remaining term is two to three years, and (v) 1% of the amount prepaid if the remaining term is one to two years. All prepayments of principal shall be applied on the most remote principal installment or installments then unpaid. Borrower(s) Initials ________________

PREPAYMENT TERMS. Borrower may prepay principal of the Credit as follows: If the original Credit amount is $10,000 or more, and there are (12) months or more remaining until maturity, Borrower shall pay to Bank a prepayment fee equal to (i) 5% of the amount prepaid if the remaining term is five or more years, (ii) 4% of the amount prepaid if the remaining term is four to five years, (iii) 3% of the amount prepaid if the remaining term is three to four years, (iv) 2% of the amount prepaid if the remaining term is two to three years, and (v) 1% of the amount prepaid if the remaining term is one to two years. All prepayments of principal shall be applied on the most remote principal installment or installments then unpaid. Borrower(s) Initials ________________.