Material interest is a component of the entry of a land charge, in department III of the land register apart from the amount of land charge.
The interest and the amount of land charge represent the maximum safeguard frameworks, which valid in case of an auction by order of the court the bank can make.
For safety reasons (e.g. by interest fluctuations, resulting costs in the case of insolvency) from the money lenders to 20% material interest is registered.
Basis of the pecuniary claim is however the interest rate agreed upon in the credit agreement. The material interest represents the maximum demand of the land charge creditor (money lender) from property in case of the utilization (auction by order of the court).
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M» Market weighing function» Material interest » Mathematics of finance » Mezzanine capital » Modigliani Miller theorem » Mortgage |
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