payment cap

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Payment Cap

The maximum periodic payment a borrower may be charged on a contract or agreement. For example, an adjustable-rate mortgage may have a payment cap stating that a payment will not rise over a certain level, even if the formula used to calculate the payment would have it do so. A payment cap reduces the risk of the party making the payments.
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payment cap

A limit on the allowable increase of mortgage payments under an adjustable-rate mortgage.The typical horror story used to illustrate this principle envisions interest rates increasing dramatically so that a capped payment is no longer sufficient to pay accrued interest,much less any principal reductions. In such a situation, the accrued but unpaid interest is added to the principal, making the loan grow larger over time rather than smaller. In most of the real world, loans with payment caps also have interest rate caps, so it is contractually impossible for interest rates to climb to an amount causing negative amortization.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Payments are based on a certain percentage of the revenues generated from the sales, and any future out-licensing, of Rubraca with quarterly payment caps depending on trial outcome.
Set payment caps at the lowest of the actual charge or 74% of the NLA
ARMs also come with identified interest rate caps and/or payment caps. With so many factors to consider, it's very important to thoroughly understand everything about an ARM offer so you are not caught off guard in the future when the rate changes.
"A better structured CAP in which the supports are more clearly targeted to the provision of goods the market cannot supply does not require the additional complexity of payment caps," he said.
Especially if and when the Valley trains pick up on it too and they get top-up machines and payment caps, so there's no need to worry about spending more than a daily pass would have cost.
This is because the court approved plan allowed for the statutory subrogation claims of guaranty associations to be offset against their payment caps. In the typical insurance liquidation, the guaranty association pays out up to its statutory cap to claimants, and then has a claim for such amounts against the insolvent estate recoverable pro rata with other claimants if and when the estate makes a distribution in the future.
Grassley described that step as incremental reform that fits with other payment caps. He also included new language aimed at ending payments to those not actively engaged in farm operations.
These limited plans generally have payment caps for various conditions such as accidents and outpatient surgeries.
"The CAP structured where support is more clearly targeted to the provision of goods the market cannot supply does not require the additional complexity of payment caps.
Hall referenced pieces in the act that cover insurance and preexisting conditions, lifetime payment caps and closing the drug coverage donut hole.
The report observed that after the UAE Central Bank implemented mortgage restrictions linked to borrower's age, payment caps and maximum LTVs (loan-to-value ratio), mortgage-backed demand tapered.
An alternative is to apply payment caps to the stabilization of patients in emergency situations, as defined in the Emergency Medical Treatment and Active Labor Act (EMTALA).