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Prepayment Effect

Prepayment Effect​

Acronym: PPEF
Identifier: prepaymentEffect
Group: Optionality
Type: Enum
Default: N

Description​

This attribute defines whether or not the right of prepayment exists and if yes, how prepayment affects the remaining principal redemption schedule of the contract

Allowed Values​

  • No Prepayment (N) (noPrepayment / 0): Prepayment is not allowed under the agreement.
  • Prepayment Reduces Redemption Amount (A) (prepaymentReducesRedemptionAmount / 1): Prepayment is allowed and reduces the redemption amount for the remaining period up to maturity.
  • Prepayment Reduces Maturity (M) (prepaymentReducesMaturity / 2): Prepayment is allowed and reduces the maturity.