Face amount refers to the nominal value or dollar value of a security stated by the issuer. For bonds, it is the principal amount paid back to the bondholder at maturity. For insurance policies, it represents the amount payable to the beneficiary upon the death of the insured.
Legal age refers to the official standard of maturity upon which an individual is considered legally responsible for their actions. In the context of real estate, contracts involving minors are typically voidable.
Maturity refers to the due date of a loan, bond, lease, or insurance policy when the principal amount or full sum is to be repaid or the agreement expires. It establishes the timeline over which periodic payments or interest accrues and is eventually repaid.
A tranche refers to a piece, portion, or slice of a deal or structured financing. Each tranche offers a different risk-reward ratio to suit different investor appetites.
A Yield Maintenance Prepayment Penalty ensures lenders are compensated for the potential loss of interest income if a borrower pays off a loan early.
