luda002

kh.asif Wrote:
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> If I am not mistaken the only place the statement
> is incorrect is about the "non-amortizing assets".
> The principal payments can be made prior to
> lockout if certain conditions occur like
> insurer call,specific date is reached, collateral
> value falls below certain amount, latter of call
> or date etc (there was another related to spreads
> mentioned in the section related to credit card
> backed loans).


Bingo. Under special circumstances, the lockout period can end early and principal repayment beings. So it is incorrect to say it only happens after the lockout period.