Question:

What is “Break Costs” mean?

Answer:

Chi Phí Trả Nợ Trước Hạn

“Break Costs” means the amount (if any) by which:

(a) the interest that the Bank should have received for the period from the date of receipt of all or any part of a Loan or unpaid sum to the last day of the current Interest Period in respect of that Loan or unpaid sum, had the principal amount or unpaid sum received been paid on the last day of that Interest Period;

minus

(b) the amount which that Bank would be able to obtain by placing an amount equal to the principal amount or unpaid sum received by it on deposit with a leading bank for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.