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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

prior redemption privilege  

Definition 1.

A clause in some loans allowing the borrower to pay off the debt prior to its due date without incurring a penalty. This is an advantage for a borrower when interest rates are falling, since he/she can pay off the existing loan and then refinance at a more favorable rate. also called prepayment privilege.
 
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