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Balloon Loan

A loan or bond in which the borrower makes only interest payments for a set period of time. At the end of the term, the borrower repays the entire principal at once. A balloon loan may be useful when the borrower expects interest rates to be low at the end of the term, allowing him/her simply to refinance the loan. However, there is a high risk of default because not all borrowers actually have the cash to repay an entire loan in one payment. See also: Balloon Mortgage.


The loan balance remaining at the time the loan contract calls for full repayment.

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O'Neals' Baloon was a thirty-second hop across Columbus Avenue from the New York State Theater.
At the time of the painting, Dick Harvey and Speed Stone were the manager and maitre d', respectively, of O'Neals' Baloon.
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