nonamortizing

Definitions

Not requiring the borrower to make scheduled payments; having no amortization schedule.

not-comparable

Examples

“The assets of thrift institutions are dominated by amortizing (mortgage) instruments (see⟳ Appendix B). For banking institutions, nonamortizing assets (particularly commercial loans) are considerably more important than they are for thrifts.”

“The building appraises at its cost⟳ basis, and its debt is a nonamortizing mortgage with a loan-to-value ratio of 0.8 and 9 percent interest⟳.”

“For a nonamortizing asset, while the concept of a prepayment does not exist⟳, a projection of defaults is still necessary to project how much will be recovered and when.”

CEFR level