Par Value | Practical Law

Par Value | Practical Law

Par Value

Par Value

Practical Law Glossary Item 4-385-6781 (Approx. 2 pages)

Glossary

Par Value

For finance and accounting purposes, the stated value or face value. In the case of a loan, the value of the loan based on the amount owed.
In practice, "par loans" are defined as loans for which the average bid from buyers of the loan from other lenders on the secondary market is at least 90 cents on the dollar.