Loan Contract

Definition

Loan Contract. An agreement whereby one party extends money or credit to another party with the agreement that the borrowed money will be repaid according to specific terms

There are many terms of a loan contract. They are shown here connected directly to the contract, which is true in the world. For modeling convenience, you have the option to group the terms together into containers that the Loan Contract points to. The terms are then connected to the containers instead of to the contract. For example, an instance of the class 'interest payment terms' could be used to contain all the interest rate terms for a given loan contract.

Not all loan contracts are debt instruments, the latter requires that the debt obligations are transferable.

See Also

• http://financial-dictionary.thefreedictionary.com/Loan
• http://www.investopedia.com/terms/d/debtinstrument.asp

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.