skip payment clause definition

skip payment clause

Provision in some mortgage agreements whereby the borrower (mortgagor) is allowed to omit one or more payments against (1) sums paid in excess of monthly installment, or (2) against an advance notice of omission, without affecting interest accumulation and total principal payable. Also called skip payment privilege.

skip payment clause is in the Banking, Commerce & Finance subject.

skip payment clause appears in the definition of the following term: skip payment privilege

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