Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'pre-payment terms'?

A. principal repayment terms related to payment of the loan prior to maturity
B. credit agreement that may be extended up to an agreed credit limit and paid down at any time within the period of the line, if any, and on which interest is charged only on the outstanding balance
C. party that collects principal and interest payments on behalf of the lender
D. ratio, expressed as a percentage, between the principal amount of the loan and the appraised value of the asset securing the financing

Answer: principal repayment terms related to payment of the loan prior to maturity