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The highest price, interest rate, or other numerical factor allowable in a financial transaction.


The maximum interest rate that may be charged on a contract or agreement. For example, an adjustable-rate mortgage may have an interest rate ceiling stating that the rate will not go over 9% even if the formula used to calculate the interest rate would have it do so. An interest rate ceiling reduces the risk of the party paying the interest. It is also called an interest rate cap. See also: Interest Rate Floor.


If there is an upper limit, or cap, on the interest rate you can be charged on an adjustable-rate loan, it's known as a ceiling.

Even if interest rates in general rise higher than the interest-rate ceiling on your loan, the rate you're paying can't be increased above the ceiling.

However, according to the terms of some loans, lenders can add some of the interest they weren't allowed to charge you because of the ceiling to the total amount you owe. This is known as negative amortization.

That means, despite a ceiling, you don't escape the consequences of rising rates, though repayment is postponed, often until the end of the loan's original term.

Ceiling can also refer to a cap on the amount of interest a bond issuer is willing to pay to float a bond. Or, it's the highest price a futures contract can reach on any single trading day before the market locks up, or stops trading, that contract.


(1) The uppermost surface of a room or space. When a lease makes all improvements “below ceiling”the responsibility of the tenant,one must ask if “ceiling”means the concrete bottom of the floor above,or if it means the suspended grid system with ceiling tiles.The space in between the two is called the plenum.All the wiring,plumbing,and ductwork go through the plenum,so the choice of which surface is the “ceiling”could mean a substantial difference in tenant responsibilities.

(2) An upper limit on something,such as the IRS ceiling of $1,000,000 worth of home mortgage debt for which one can deduct mortgage interest.

References in periodicals archive ?
Figure 1 shows the results of comparing the estimated 90th percentile during the open and closed periods with its upper limit at the .
In Puducherry, upper limit for parliamentary constituency is Rs 32 lakh and for assembly Rs 8 lakh.
The motion goes on to warn that CMS has not only used flawed AMPs to establish Federal Upper Limits on reimbursement for generic drugs, but will publish flawed AMPs for all drugs--both branded and generic--on the public web site, causing further harm both to retail pharmacy and to the public.
The literature has documented that the optimal private insurance contains an upper limit on coverage for the following reasons: price regulation (Raviv, 1979), the insured's option of bankruptcy (Huberman, Mayers, and Smith, 1983), the insured's option for converting or trading the damaged properties (Garratt and Marshall, 1996), or the manipulation of audit cost (Picard, 2000).
Around 20% of people with mild TSH elevations who have ultrasound evidence of occult thyroid dysfunction will have no thyroid antibodies detected, however, suggesting that the upper limit of the reference range in NHANES III is inflated by this subgroup, said Carole Spencer, Ph.
0000073 Table 33-4 Upper limits for ration nutrients used in the rabbit ration application Upper Limit DMI 6% over predicted requirement DE 6% over predicted requirement Fat No upper limit ADF No upper limit CP 30% over predicted requirement Arg No upper limit Gly+Ser No upper limit His No upper limit Ile No upper limit Leu No upper limit Lys No upper limit Met No upper limit Met+Cys No upper limit Phe No upper limit Phe+Tyr No upper limit Pro No upper limit Thr No upper limit Trp No upper limit Val No upper limit Ca 4.
Cllr Clein added: "There are dangers in setting an official upper limit on subsidy, because it could increase the tendency to go up to the line.
Because carbides in ductile iron castings tend to increase velocity, castings with excessive carbides can be discerned by using an upper limit for acceptable carbide levels.
From these data an upper limit for the branching ratio (BR) for the radiative decay branch can be estimated.
965(c)(1) term "applicable financial statements," which comes into play when computing the deduction's upper limit.
And then dumb guys who didn't know that that was the upper limit came up with ideas that would take us farther.