If the allowable payment does not cover interest due on the principal at the adjusted rate of interest, negative amortization will occur. It usually stipulates a minimum rental and is regularly used for retailers who are tenants. Typically the percentage applies to sales in excess of a pre-established base amount of the dollar sales volume. Required in the proper design of septic tank drainfields. If the work is not performed, the insurer promises to complete the work or pay damages up to the amount of the bond.
Most states attempt to outlaw perpetuities because of potential problems.
A perpetual income stream may cause bankruptcy. A deed that keeps property in a family in perpetuity can cause financial hardship. Legally, a natural person is a human being who has reached majority. Property that is movable, not fixed to land. Contrast with defendant.