Accordion feature

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Revision as of 19:20, 17 February 2019 by imported>Doug Williamson (Expand first sentence.)
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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.


See also