Principal Balance/Number of Contracts Clause Samples

The 'Principal Balance/Number of Contracts' clause defines the total outstanding amount owed under a loan or group of loans, as well as the total number of contracts included in a transaction. In practice, this clause specifies the aggregate principal that remains unpaid and may list or reference the individual contracts that make up the total, ensuring all parties are clear on the scope of the financial obligation. Its core function is to provide transparency and precision regarding the size and composition of the debt or asset pool, which is essential for accurate accounting, risk assessment, and enforcement of the agreement.