Prepayment
/ˌpriːˈpeɪmənt/
Definitions
- (n.) The act of paying a debt or installment before it is due.
The borrower made a prepayment on the mortgage to reduce interest costs.
- (n.) An amount paid in advance of the normal schedule, often to secure services or goods.
The tenant made a prepayment of rent before moving in.
Forms
- prepayments
See also
Commentary
Prepayment clauses in contracts often stipulate conditions and possible penalties for early settlement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.