Now "it's crunch time" again for the hospital, Ms. Leahy said, because in addition to the interest payments it must begin this year to pay off the principal in annual installments of $500,000.
Those rights include, among others, the right to repayment of the principal in monthly installments over a fixed term at specified adjustable interest rates, and they are protected from modification by § 1322(b)(2).
(g Loans made under this section shall be amortized under a generally recognized plan which provides for equal monthly installments consisting of principal and interest, except for the final installment, which may not be in excess of two times the regular monthly installment.
(a) Equal installments of principal plus interest will be amortized over the loan term for purposes of setting a payment schedule.
The term of the mortgage shall not be less than 15 years, and shall be repayable in equal monthly installments of principal and fixed interest during the mortgage term in an amount which would be sufficient to retire a debt with the same principal and fixed interest rate over a period not exceeding 30 years.
The assumption is that the installments of principal paid in will be augmented by interest thereon compounded at 5 1/2 per cent., so that the company will be able to pay the sum named in the certificate before the holder's payments reach that total.
We can speculate that it's possible that the bonds allow rolling all installments of interest and principal into a balloon payment at the ultimate maturity date of the loan.
Amortization: The gradual repayment of a mortgage by installments, calculated to pay off the principal at the end of a fixed period of time.
No prepayment penalty shall be allowed, although a Federal credit union may require that any partial prepayments be made on the date monthly installments are due and be in the amount of that part of one or more monthly installments that would be applicable to principal.
The figures that play a role in this calculation include your mortgage payment (both principal and interest), mortgage insurance premiums, property tax installments, hazard insurance premiums and homeowner association dues.
