Conversion Clause

Definition

• A provision that may be present in an adjustable-rate loan agreement which allows the loan to be changed to a fixed-interest rate loan, usually for an additional charge.

Synonyms
instructions, legal contract, adjustment clause, provision, fine print, convertible

Related Terms and Acronyms

• Acceleration Clause — Definition,
  • A provision within a document that explains how the lender expects payment for a loan, in due haste.
• Convertible Mortgage — Definition, Important,
  • A mortgage where the borrower has the option at specified times to change the term length.