make whole provision

Definition

A provision that allows a borrower to prepay the remaining fixed rate term debt. However, the borrower has to make an additional payment that is derived from a formula based on the net present value of the future debt payments. This can often be significant, which is why such provisions are rarely invoked.

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The make whole provision was a really interesting thing to me and I wanted to talk about it with him.

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You may want to try and use a make whole provision if you think that would be the easiest way to go on.

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MAKE WHOLE PROVISION DEFINITION OF 'MAKE WHOLE CALL (PROVISION)' A type of call provision on a bond allowing the borrower to pay off remaining debt early. The borrower has to make a lump sum payment derived from a formula based on the net present value (NPV) of future coupon payments that will not be paid because of the call.

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make up for maker