A short-term, variable-rate loan in which interest payments above a certain rate are deferred until the maturity date. For example, an individual might take out a bow tie loan with an upper limit on the interest rate at 20%. Interest on the loan will fluctuate with the market, but if interest rates go above 20% the borrower will not have to pay the amount over 20% until the loan is mature.
Related information about bow tie loan:
- Bow Tie Loan Definition | Investopedia
A short-term, variable-rate loan in which unpaid interest charges above a predetermined interest rate are deferred. A variable-rate loan is a loan in which the ...
- Bow-Tie Loan - Financial Dictionary - The Free Dictionary
A short-term loan with a variable interest rate; if the interest rate rises above a predetermined level, the payment collected toward the higher interest is instead ...
- bow-tie - definition of bow-tie by the Free Online Dictionary ...
Bow-leggedness · bow-on · Bow-pen · Bow-pencil · Bow-saw · bow-shaped. bow- tie. Bow-Tie Antenna · Bow-Tie Loan · Bow-Tie Loans · Bow-Tie Patch Antenna ...
- What is bow tie loan? definition and meaning
Definition of bow tie loan: A short-term, variable-rate loan in which interest ... For example, an individual might take out a bow tie loan with an upper limit on the ...
- Bow-Tie Loan: Definition from Answers.com
Bow-Tie Loan Short-term variable rate loan that defers any unpaid interest charges above a pre-determined interest rate.
- The Language of Commercial Real Estate Finance - Latham & Watkins
Bow-Tie Loan: Modification of an existing loan in distress, deferring interest that accrues above a pre-determined interest rate. A. Bow-Tie Loan rolls any ...
- 859 F2d 921 Frye v. General Electric Credit Corporation | OpenJurist
Frye was unable to pay interest on the loan after April 1, 1980. The parties orally agreed to a "bow tie" loan modification under which Frye would be required for ...
- 859 F.2d 921
The parties orally agreed to a "bow tie" loan modification under which Frye would be required for a time to pay the interest only up to a maximum rate of 15 ...