Drop lock


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Drop lock

The fixing of the interest rate on a floating-rate note or preferred stock if it falls to a specified level.
References in periodicals archive ?
With our Drop Lock, customers can take advantage of an excellent tracker rate of 3.
If they intend to exercise the drop lock within a short time, like a year, it might make sense to take a lower fee with a higher rate because a high fee would cost them dearly over a short period.
Drop Lock deals give the flexibility needed in an uncertain market with the chance to take advantage of lower tracker rates, but with the security of being able to move to a fixed rate at any time if the base rate goes up.
This latest version of the market leading Defiance knee brace offers a durable lightweight and easy-to-use, patent-pending drop lock hinge design, which provides a new method for controlling knee motion.
Drop locks allow a borrower to drop on to a fixed rate at a later date, penalty-free.
Drop locks allow a borrower to drop onto a fixed rate at a later date, penalty-free.