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Yield Maintenance
Practical Law Glossary Item 9-580-2608 (Approx. 2 pages)
Glossary
Yield Maintenance
A form of prepayment premium. Yield maintenance allows a lender to attain its original yield without suffering any loss if the borrower pays off a loan before its maturity.
For an example of a mortgage note that uses a yield maintenance formula to calculate the prepayment premium, see Standard Document, Promissory Note (Commercial Real Estate Loan) (Pro-Lender).