Breakage Costs (Banking & Finance Glossary)

Summary

The losses or expenses that are incurred by the Lender and thus paid to the Lender by the Borrower as a result of the Borrower’s (a) pre-payment of the loan under a Credit Agreement on a day that is not the last day of the relevant interest period, ( b) failure to make a payment on a loan after giving notice thereof, or (c) failure to borrow under the loan after giving notice thereof.