Accordion feature: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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''Loan documentation''.
''Loan documentation''.


A clause in a loan agreement giving the borrower the option to increase the principal amount under the agreement, for example to fund future expansion.
An accordion feature is a clause in a loan agreement giving the borrower the option to increase the principal amount under the agreement, for example to fund future expansion.


The increased amount of principal is lent and borrowed on the same terms as the original borrowing.
The increased amount of principal is lent and borrowed on the same terms as the original borrowing.
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== See also ==
== See also ==
* [[Loan agreement]]
* [[Loan agreement]]
* [[Principal]]
* [[Trombone]]
* [[Trombone]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]

Latest revision as of 19:20, 17 February 2019

Loan documentation.

An accordion feature is a clause in a loan agreement giving the borrower the option to increase the principal amount under the agreement, for example to fund future expansion.

The increased amount of principal is lent and borrowed on the same terms as the original borrowing.


The term derives from the musical instrument, which has the capacity to expand when being played.


See also