The new agreement has a mandatory prepayment clause
in case the company shall have a a cash position exceeding USD5m in 2009 and 2010, and USD7m in 2011 until maturity.
Recent decisions relating to prepayment clauses
, including EFH and Momentive
Many consumers aren't familiar with prepayment clauses
Though some California banks have included prepayment clauses
with rate discounts on adjustable-rate mortgages for several years, virtually no major lenders in the country routinely have marketed them with fixed-rate mortgages.
Bank of America, San Francisco, interestingly the pioneer of conventional mortgage-backed securities in 1977, has been a leader in experimenting with prepayment clauses
to enhance its portfolio return.