Simple interest means interest computed on the principal balance outstanding
Income interest means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion.
Available Interest means, with respect to any Payment Date, the total of the following amounts allocable to interest received by the Servicer on or in respect of the Receivables during the related Collection Period (computed by the simple interest method): (i) the sum of the interest component of all (a) collections on or in respect of all Receivables other than Defaulted Receivables, (b) Net Liquidation Proceeds, (c) Advances made by the Servicer, if any, (d) Warranty Purchase Payments, (e) Administrative Purchase Payments and (f) the Yield Supplement Withdrawal Amount, if any, for the related Payment Date, less (ii) the sum of all (a) amounts received on or in respect of a particular Receivable (other than a Defaulted Receivable) to the extent of the aggregate Outstanding Interest Advances in respect of such Receivable and (b) Net Liquidation Proceeds with respect to a particular Receivable to the extent of the aggregate Outstanding Interest Advances in respect of such Receivable.
Base Interest means the interest that would otherwise accrue on the Securities under the terms thereof and the Indenture, without giving effect to the provisions of this Agreement.
Simple Interest Mortgage Loan Those simple interest loans as noted on the Mortgage Loan Schedule under the data field designated “DSI.”
Capitalized Interest means, with respect to the interest due or to be due on a Series of Bonds prior to, during and for a period not exceeding one year after the completion of a Project to be funded by such Series, all or part of such interest which will be paid, or is expected to be paid, from the proceeds of such Series.
Asset Interest is defined in Section 2.1(b).
Certificate Interest means, for any Class for any Interest Payment Date, the product of (a) the Class Invested Amount for such Class for such Interest Payment Date and (b) a fraction the numerator of which is (1) with respect to each Class that has no Subclasses, the Certificate Rate for such Class or (2) with respect to each Class that has two or more Subclasses, the Class Weighted Average Certificate Rate, and the denominator of which is (x) if the relevant Certificate Rate is to be calculated on the basis of the actual number of days elapsed and a 360-day year, 360 divided by the actual number of days from and including the immediately preceding Interest Payment Date (or, in the case of the first Interest Payment Date, from and including the Series Closing Date) to but excluding the current Interest Payment Date or (y) if the relevant Certificate Rate is to be calculated on the basis of a 360-day year of twelve 30-day months, twelve divided by the number of Distribution Dates from and including the preceding Interest Payment Date to but excluding the current Interest Payment Date (or, in the case of the first Interest Payment Date, 360 divided by the number of days from and including the Series Closing Date to but excluding the 15th day of the month in which current Interest Payment Date occurs, assuming 30-day months).
Class X Interest The Upper-Tier Regular Interest represented by the Class X Certificates as specified and described in the Preliminary Statement and the related footnote thereto.
Advance Interest means the interest accrued on any Servicing Advance which is payable to the party that made that Servicing Advance, in accordance with the Lead Securitization Servicing Agreement.
Note A Percentage Interest means a fraction, expressed as a percentage, the numerator of which is the sum of the Note A-1 Principal Balance, the Note A-2 Principal Balance, the Note A-3 Principal Balance, the Note A-4 Principal Balance and the Note A-5 Principal Balance, and the denominator of which is the sum of the Note A-1 Principal Balance, the Note A-2 Principal Balance, the Note A-3 Principal Balance, the Note A-4 Principal Balance, the Note A-5 Principal Balance and the Note B Principal Balance.
Simple Interest Loan means any Loan under which the portion of a payment allocable to interest and the portion allocable to principal is determined by allocating a fixed level payment between principal and interest, such that such payment is allocated first to the accrued and unpaid interest at the Annual Percentage Rate for such Loan on the unpaid principal balance and the remainder of such payment is allocable to principal.
Class B Interest Each of the Class B-1 and Class B-2 Interests.
Private interest means an interest held by an individual that is:
Class A Interest Each of the Class A-1, Class A-2 and Class A-3 Interests.
Class CE Interest An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class CE Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.
Lower-Tier REMIC Interest Any one of the Lower-Tier REMIC Regular Interests or the Class A-LR Certificates.
Net Interest means gross interest accrued to or in favour of a unit trust scheme less allocated permitted expenses; and
Class A Percentage Interest As of any date of determination, with respect to the Class A Regular Interest and the Class A Certificates, a percentage interest equal to a fraction, the numerator of which is the Certificate Balance of the Class A Certificates, and the denominator of which is the Certificate Balance of the Class A Regular Interest.
Lower Tier Interest As described in the Preliminary Statement.
Insurable interest as used in this section means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.
Class R-3 Interest The uncertificated Residual Interest in REMIC 3.
Base Interest Fraction With respect to any Principal Prepayment on any Mortgage Loan and with respect to any Class of the Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-AB, Class A-S, Class B, Class C, Class D and Class E Certificates, a fraction (a) whose numerator is the amount, if any, by which (i) the Pass-Through Rate on such Class of Certificates exceeds (ii) the discount rate used in accordance with the related Loan Documents in calculating the Yield Maintenance Charge with respect to such Principal Prepayment (or, if the Yield Maintenance Charge is a fixed percentage of the principal balance of the related Mortgage Loan, the yield rate applicable to any related yield maintenance charge or that is otherwise described in the related Loan Documents) and (b) whose denominator is the amount, if any, by which (i) the Mortgage Rate on such Mortgage Loan exceeds (ii) the discount rate used in accordance with the related Loan Documents in calculating the Yield Maintenance Charge with respect to such Principal Prepayment (or, if the Yield Maintenance Charge is a fixed percentage of the principal balance of the related Mortgage Loan, the yield rate applicable to any related yield maintenance charge or that is otherwise described in the related Loan Documents); provided, however, that under no circumstances shall the Base Interest Fraction be greater than one. If the discount rate referred to in the preceding sentence is greater than or equal to both of (x) the Mortgage Rate on the related Mortgage Loan and (y) the Pass-Through Rate described in the preceding sentence, then the Base Interest Fraction shall equal zero, and if such discount rate is greater than or equal to the Mortgage Rate on such Mortgage Loan, but less than the Pass-Through Rate described in the preceding sentence, then the Base Interest Fraction shall equal one.
Receivable Interest means, at any time, an undivided percentage ownership interest (computed as set forth below) associated with a designated amount of Invested Amount, selected pursuant to the terms and conditions hereof in (i) each Receivable arising prior to the time of the most recent computation or recomputation of such undivided interest, (ii) all Related Security with respect to each such Receivable, and (iii) all Collections with respect to, and other proceeds of, each such Receivable. Each such undivided percentage interest shall equal: IA + RR NPB where: IA = the Invested Amount of such Receivable Interest. NPB = the Net Pool Balance. RR = the Required Reserve. Such undivided percentage ownership interest shall be initially computed on its date of purchase. Thereafter, until the Facility Termination Date, each Receivable Interest shall be automatically recomputed (or deemed to be recomputed) on each day prior to the Facility Termination Date. The variable percentage represented by any Receivable Interest as computed (or deemed recomputed) as of the close of the business day immediately preceding the Facility Termination Date shall remain constant at all times thereafter.
L/C Interest shall have the meaning ascribed to such term in Section 3.6 hereof.
Proportionate Interest has the meaning specified in Section 2.5(d);
FAQs
What is simple interest law insider? ›
This is a simple interest loan. This means that the amount of interest you will actually owe under this Note may vary depending upon when you make your monthly payments. The earlier you make your payments before their due dates, the less interest you will owe.
What is single interest system? ›Under the single entry system of bookkeeping, the cash book and personal accounts of creditors and debtors are maintained, and no other ledger is maintained. Every transaction of the business is recorded in the cash book without applying the principles of the double-entry system of bookkeeping.
What is simple interest vs compound interest? ›Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and the accumulated interest of previous periods, and thus can be regarded as “interest on interest.”
What are the two types of simple interest? ›Kinds of Simple Interest. There are basically two kinds of simple interest: ordinary and exact. These two terms uses the same formula for solving the simple interest but they differ on using the time.
What are the three elements of simple interest? ›Similar to the scenario above, calculating simple interest involves three elements: the principal balance, interest rate, and term of the loan.
What is an example of simple interest? ›Simple Interest
Interest, in its most simple form, is calculated as a percent of the principal. For example, if you borrowed $100 from a friend and agree to repay it with 5% interest, then the amount of interest you would pay would just be 5% of 100: $100(0.05) = $5.
Single-entry and double-entry accounting are both methods of record-keeping for companies' financial transaction data. Single-entry accounting records each transaction one single time, while double-entry accounting records each transaction twice, once as a debit and once as a credit.
What are the types of interest? ›What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest.
What is the difference between single and double account system? ›In single-entry bookkeeping, the income and expenses for the transactions are recorded in a cash register, whereas the double-entry system starts with a journal, followed by a ledger, a trial balance, and finally financial statements.
What is an example of simple and compound interest? ›Installment loans, like auto loans and mortgages, use simple interest. This means you'll end up paying less interest as your balance lowers. Savings accounts and credit cards typically use compounding interest. That means you'll accrue more interest as the life of the loan continues.
Do banks use compound or simple interest? ›
Banks use compound interest for some loans. But compound interest is most commonly used in investments. Also, compound interest is used by fixed deposits, mutual funds, and any other investment that has reinvestment of profits.
How does simple interest work? ›A simple interest loan is a non-compounded loan. This means that your interest is calculated off the remaining principal balance of your loan, so that you pay a set monthly amount plus interest. If you can manage to pay more on this set amount, it will lower your payments going forward.
How do you identify simple interest? ›The interest, typically expressed as a percentage, can be either simple or compounded. Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.
Why is simple interest useful? ›Typically, simple interest benefits borrowers. By only charging interest on the principal amount, simple interest charges less interest overall than a loan that uses compounding interest. That means that borrowing money is cheaper. If you're getting a loan, getting a loan with simple interest may help you save money.
Is simple interest short term? ›A simple interest loan is a type of short-term loan that uses the simple interest method of charging interest on the principal balance. Common loan types that use simple interest are personal loans, car loans, unsecured loans and many types of mortgages.
What is the example of single entry? ›Single entry bookkeeping is where a transaction only has to be recorded against one category, either an income account or an expense account. A cash book is a perfect example of this method of bookkeeping.
Who keeps single entry? ›Most businesses maintain a record of all transactions based on the double-entry bookkeeping system. However, many small, simple businesses maintain only a single-entry system that records the "bare-essentials." In some cases only records of cash, accounts receivable, accounts payable and taxes paid may be maintained.
What is single entry in simple words? ›: a method of bookkeeping that recognizes only one side of a business transaction and usually consists only of a record of cash and personal accounts with debtors and creditors.
What are the 5 kinds of interests? ›Interest comes in various forms, and its primary types include Fixed Interest, Variable Interest, Annual Percentage Rate, Prime Interest Rate, Discounted Interest Rate, Simple Interest, and Compound Interest.
What classification is interest? ›Paragraph 33 of IAS 7 states that interest paid and interest and dividends received are normally classified as operating cash flows by a financial institution.
What are the 2 main types of accounts? ›
- Current account. A current account is a deposit account for traders, business owners, and entrepreneurs, who need to make and receive payments more often than others. ...
- Savings account. ...
- Salary account. ...
- Fixed deposit account. ...
- Recurring deposit account. ...
- NRI accounts.
Accounts are classified in accounting using one of two methods: the current approach or the classic approach. The accounts are classified as asset accounts, liability accounts, capital or owner's equity accounts, withdrawal accounts, revenue/income accounts, and expense accounts, according to the modern approach.
What are single accounts? ›I. Definition
Single accounts contain funds that are either owned by one natural person or treated as if. they are owned by one natural person.
Compound interest is when you add the earned interest back into your principal balance, which then earns you even more interest, compounding your returns. Let's say you have $1,000 in a savings account that earns 5% in annual interest. In year one, you'd earn $50, giving you a new balance of $1,050.
What is an example of compound interest? ›For example, if you deposit $1,000 in an account that pays 1 percent annual interest, you'd earn $10 in interest after a year. Thanks to compound interest, in Year Two you'd earn 1 percent on $1,010 — the principal plus the interest, or $10.10 in interest payouts for the year.
Are car loans simple interest? ›Interest on an auto loan is calculated using simple interest, not compound interest, meaning the interest doesn't earn interest. Interest on a car loan is often front-loaded so that early payments pay more toward interest and less toward the paydown of the principal loan balance.
Are home mortgages simple or compound interest? ›In fact, all mortgages are simple interest except those that allow negative amortization. An important thing to pay attention to is how the interest accrues on the mortgage: either daily or monthly.
What are the three types of interest rates? ›There are essentially three main types of interest rates: the nominal interest rate, the effective rate, and the real interest rate. The nominal interest of an investment or loan is simply the stated rate on which interest payments are calculated.
Is home loan simple or compound? ›The important thing to note for Home Loan interest rate is that it is compounded interest and not simple interest. In other words, you don't pay interest only on the principal amount, but you pay interest on the principal amount plus the interest accrued.
Who benefits from simple interest? ›beneficial for borrowers
simple interest loans are highly beneficial for borrowers as they have to make lower interest payments compared to compound interest loan offers. in a simple loan, the interest is calculated based on your outstanding loan balance on your payment due date.
What are the cons of simple interest? ›
Simple interest has the disadvantage that if the interest rate is high, the borrower will pay more. Furthermore, if the repayment period (years) is greater, the borrower will pay more.
Is simple interest effective? ›The main advantage of a simple interest rate is that it's easy to calculate interest rate and understand. The downside is that it doesn't consider the time value of money, which means you could pay more in total interest over time.
What is the meaning of law insider? ›Law Insider is a legal website that publishes articles on legal topics happening in the world today and reports on legal current events around the world. All the articles are written by highschool students and reviewed and currently edited by a talented board of highschool students from around the world.
How is simple interest used in real life? ›Car loans, amortized monthly, and retailer installment loans, also calculated monthly, are examples of simple interest; as the loan balance dips with each monthly payment, so does the interest. Certificates of deposit (CDs) pay a specific amount in interest on a set date, representing simple interest.
What does a simple interest contract mean? ›On a simple interest contract, finance charges (e.g., interest) are calculated based on the unpaid principal balance of the contract. As each payment is made, the payment amount is applied toward the finance charges that have accrued since the last payment was received.
What is a simple interest quizlet? ›Simple interest is calculated on the principal amount only. The formula for calculating simple interest is: Simple Interest = Principal × Rate × Time.
Do Lawyers Use Law Insider? ›Law Insider is a subscription based contract database and resource center that helps over 300,000 lawyers and business owners draft and negotiate contracts more effectively.
Who owns Law Insider? ›I'm the co-founder at Law Insider and advise a handful of other tech startups in the compliance and HR industries. My previous roles include President/GM at EVERFI, CRO at LawRoom, and VP of Sales at ThinkHR.
What does NPR mean in law? ›NPR means a Notice of Program Reimbursement or other similar notice provided by a fiscal intermediary to a provider of Medicare covered services notifying the provider of a reimbursement (and any potential adjustments to the provider's cost report) due to Medicare.
What is simple interest for dummies? ›Simple Interest Formula
To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is "Simple Interest = Principal x Interest Rate x Time." This equation is the simplest way of calculating interest.
Why is simple interest rarely used? ›
Simple interest is rarely used in common loans and deposits because of the time value of money. When interest earned in a specific period is added back to the principal, this is called compounding. This means in the next period, interest is calculated on the new (higher) amount rather than the original amount.
What is simple interest logic? ›Simple Interest is the interest calculated on the Principal amount, rather than being calculated on cumulative amount. Simple Interest, SI = P x R x T / 100, where P is the principal, R is the rate of interest per unit time period and T is the time period.
What are the factors of simple interest? ›- Principal. This is the amount of money being borrowed. ...
- Rate of Interest. This is the percent to be used to calculate the additional amount to be paid along with the principal. ...
- Time.