Accordion feature: Difference between revisions
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imported>Doug Williamson m (Spacing.) |
imported>Doug Williamson (Expand first sentence.) |
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''Loan documentation''. | ''Loan documentation''. | ||
An accordion feature is a clause in a loan agreement giving the borrower the option to increase the principal amount under the agreement, for example to fund future expansion. | |||
The increased amount of principal is lent and borrowed on the same terms as the original borrowing. | The increased amount of principal is lent and borrowed on the same terms as the original borrowing. | ||
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== See also == | == See also == | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Principal]] | |||
* [[Trombone]] | * [[Trombone]] | ||
[[Category:Long_term_funding]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 19:20, 17 February 2019
Loan documentation.
An accordion feature is a clause in a loan agreement giving the borrower the option to increase the principal amount under the agreement, for example to fund future expansion.
The increased amount of principal is lent and borrowed on the same terms as the original borrowing.
The term derives from the musical instrument, which has the capacity to expand when being played.
