Debt Ontology
type: Ontology
abstract: This ontology defines concepts that are common to all debt instruments, such as debt, borrower, lender, debtor, creditor, interest, principal, and the like. It is designed to be used by various other FIBO specifications, including but not limited to SEC/Debt and LOAN.
license: Copyright (c) 2016-2025 EDM Council, Inc. Copyright (c) 2016-2025 Object Management Group, Inc. Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the 'Software'), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED 'AS IS', WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE. See https://opensource.org/licenses/MIT.
imports: FinancialProductsAndServices
imports: AccountingEquity
imports: CurrencyAmount
imports: Agreements
imports: Contracts
imports: Assessments
imports: BusinessDates
imports: FinancialDates
imports: Occurrences
imports: LegalCapacity
imports: Ownership
imports: Parties
imports: PaymentsAndSchedules
imports: ProductsAndServices
imports: Relations
imports: AnnotationVocabulary
imports: Classifiers
imports: Collections
imports: ContextualDesignators
imports: DatesAndTimes
imports: Designators
imports: Documents
imports: Identifiers
imports: Locations
imports: Organizations
imports: PartiesAndSituations
imports: QuantitiesAndUnits
imports: RegulatoryAgencies
imports: RolesAndCompositions
version IRI: Debt
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of the ontology was modified to use the Commons Ontology Library (Commons) Annotation Vocabulary rather than the OMG's Specification Metadata vocabulary.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was extended to incorporate the concept of a lease.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to add concepts related to credit enhancement agreements (DER-55a).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to add initial exchange date to any credit agreement.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to add several properties needed to define certain credit facilities (FBC-324) and replace additional content that is now available in the OMG Commons Ontology Library (Commons) v1.2 (FND-389).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to add the currency pertinent to a credit agreement (DER-55).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to add the starting point value of some collateral when it was acquired (DER-138) and to replace content that is now available in the OMG Commons Ontology Library (Commons) v1.1 (FND-380).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to address a punning issue due to the use of hasMethod as the parent property for hasAccrualBasis that was not detected before the latest Commons ontologies were posted to the OMG site.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to include a definition for accrued interest, needed for pricing, and correct certain process (methodology) issues in the class hierarchy (SEC-185).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to include a synonym of 'has dated date' for 'has initial interest accrual date' (FBC-322), to move the definition of promissory note to financial instruments and clarify the definitions of collateral and collateral agreement(LOAN-168), and to add a use of proceeds provision, optionally, to any credit agreement (LOAN-169).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to incorporate certain general debt schedule terms that were previously in more specific ontologies (FBC-317).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to replace additional content that is now available in the OMG Commons Ontology Library (Commons) v1.1 (FND-380).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt.rdf version of this ontology was modified to use the Commons Ontology Library (Commons) rather than the OMG's Languages, Countries and Codes (LCC), eliminating redundancies in FIBO as appropriate.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was added to the FBC domain via the FIBO 2.0 RFC in support of several FIBO debt-oriented initiatives.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to (1) add concepts including credit agreement whose principal is repaid at maturity and those whose principal is repaid over the course of the agreement, (2) move properties related to maturity to this ontology from FinancialInstruments and restructure the relationship between these two ontologies, (3) add the concept of a borrower identifier and the related scheme, (4) add the concept of an interest rate cap as a potential provision with respect to interest rate terms, and (5) clarified the definition of promissory note.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to add more detailed schedule information to support management of the various kinds of events that can impact a given contract as well as the concept of a revolving line of credit.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to add several common day count conventions used to calculate the amount of accrued interest or the present value when the next coupon payment is less than a full coupon period away, to support collateral agreements such as deeds of trust, UCC filings and the like, to add the concept of a rate reset time of day, to eliminate duplication of concepts in LCC, to simplify addresses, and to merge countries with locations.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to address text formatting issues uncovered by hygiene testing.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to make redemption provision a child of contractual commitment and move it to financial instruments, as such provisions apply to preferred shares and other instruments in addition to debt.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to move the concept of an extension provision from Debt to Contracts to support representation of preferred shares and other extendable contracts, eliminate remaining circular definitions, integrate concepts defining credit facilities, and refine the concept of collateral to differentiate collateral that is real property from financial assets such as cash, various accounts, securities, and receivables.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/DebtAndEquities/Debt/ version of this ontology was modified to use the generic statistical measures and measurements now in FND.
has maturity level: Release
copyright: Copyright (c) 2016-2025 EDM Council, Inc.
copyright: Copyright (c) 2016-2025 Object Management Group, Inc.

accrual
type: Class
subclass of: Role
subclass of: Restriction
  on property: appliesTo
  on class: interest
  min qualified cardinality: 0
definition: the process of accumulating interest or other income that has been earned but not paid
explanatory note: There are legal contractual terms for the accrual of interest, as distinct from the payment of interest.

accrued interest
type: Class
subclass of: interest
subclass of: Restriction
  on property: hasAsOfDate
  some values from: ExplicitDate
definition: amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out
explanatory note: Accrued interest refers to the interest that has accumulated on a bond or other financial obligation since the last interest payment up to, but not including, the settlement date. This interest is earned over time but not yet paid out to the bondholder, for example. If this is a dirty price, this is the amount of accrued interest that is included in the price. This is therefore passed on to the purchaser of the bond or debt instrument.

amortization
type: Class
subclass of: Role
subclass of: Restriction
  on property: is amortization of
  on class: debt
  min qualified cardinality: 0
definition: the process of reduction of debt or other costs through periodic charges to assets or liabilities, such as through principal payments on mortgages

amortization schedule
type: Class
subclass of: projected contract event schedule
subclass of: PaymentSchedule
subclass of: Restriction
  on property: comprises
  on class: interest payment schedule
  min qualified cardinality: 0
subclass of: Restriction
  on property: comprises
  on class: principal payment schedule
  min qualified cardinality: 0
subclass of: Restriction
  on property: embodies
  some values from: amortization
definition: schedule of periodic payments (repayment installments) that specify changes in the balance of the debt over time
explanatory note: Payments are divided into equal amounts for the duration of the loan or debt instrument, making it the simplest repayment model. A greater amount of the payment is applied to interest at the beginning of the amortization schedule, while more money is applied to principal at the end.

borrower
type: Class
subclass of: debtor
subclass of: ContractParty
subclass of: Customer
subclass of: Restriction
  on property: owes
  some values from: debt
subclass of: Restriction
  on property: isPlayedBy
  some values from: Restriction
    on property: isAPartyTo
    some values from: credit agreement
definition: party to a credit agreement that is obligated to repay the amount borrowed (principal) with interest and other fees according to the terms of the instrument

borrower identification scheme
type: Class
subclass of: PartyRoleIdentificationScheme
definition: system for allocating identifiers to borrowers
explanatory note: Many banks and other financial institutions have internal systems for assigning identifiers to borrowers. In the United States, larger banks may use a Customer Information File (CIF) number, assigned as a part of their federally mandated Customer Information Program (CIP).

borrower identifier
type: Class
subclass of: PartyRoleIdentifier
subclass of: Restriction
  on property: identifies
  on class: borrower
  qualified cardinality: 1
subclass of: Restriction
  on property: isDefinedIn
  on class: borrower identification scheme
  qualified cardinality: 1
definition: sequence of characters, capable of uniquely identifying a borrower
explanatory note: A given identifier identifies a particular borrower with respect to at least some number of notes/facilities inside a particular institution according to some policy for minting identifiers. Optimally, there would be a single identifier for a given borrower, but due to operational issues, this is often not the case. A CIF number, or Customer Information File number, is used to link accounts across an institution to all notes/facilities owed by a given borrower.

borrowing capacity
type: Class
subclass of: MonetaryAmount
subclass of: Restriction
  on property: isEvidencedBy
  some values from: AssessmentReport
subclass of: Restriction
  on property: hasDateOfAssessment
  some values from: ExplicitDate
subclass of: Restriction
  on property: appliesTo
  some values from: LegalPerson
definition: upper bound on the total amount of money that a lender believes a party has the ability to repay an obligation when due, as of some point in time
explanatory note: The notion of borrowing capacity is related to management decisions pertaining to credit, i.e., the creditworthiness of the borrower, loan amount, risk tolerance, and so forth, and may be reassessed from time to time depending on the type of credit agreement and regulatory requirements. Determining borrowing capacity is typically done as a part of loan origination, especially for residential mortgages.

capital lease
type: Class
subclass of: lease
definition: lease that must be reflected on an organization's balance sheet as an asset and as a corresponding liability
explanatory note: In the United States, such leases must be reported per Statement 13 of the Financial Accounting Standards Board. Generally, this applies to leases where the lessee acquires essentially all of the economic benefits and risks of the leased property.
synonym: financial lease

collateral
type: Class
subclass of: Undergoer
subclass of: Restriction
  on property: is collateralization of
  on class: Asset
  min qualified cardinality: 0
definition: something pledged as security to ensure fulfillment of an obligation to another party, to lend money, extend credit, or provision securities

CollateralAgreement
type: Class
deprecated: true
equivalent class: CollateralAgreement

collateral value as of date
type: Class
subclass of: AppraisedValue
subclass of: Restriction
  on property: hasDateOfAssessment
  some values from: ExplicitDate
subclass of: Restriction
  on property: isEstimatedValueOf
  some values from: collateral
definition: appraised value of the collateral for an obligation as of a given date

committed credit facility
type: Class
subclass of: credit facility
subclass of: Restriction
  on property: hasConstituent
  on class: committed sub-facility
  min qualified cardinality: 0
disjoint with: uncommitted credit facility
definition: credit facility that is a confirmed source of financing for the borrower, as long as the borrower meets the conditions of the agreement

committed sub-facility
type: Class
subclass of: sub-facility
subclass of: Restriction
  on property: isConstituentOf
  some values from: committed credit facility
disjoint with: uncommitted sub-facility
definition: contractually committed portion of a credit facility that is available to the borrower and may be associated with some specific collateral

credit agreement
type: Class
subclass of: MutualContractualAgreement
subclass of: WrittenContract
subclass of: Restriction
  on property: is collateralized by
  on class: collateral
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasCurrency
  on class: Currency
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasContractualElement
  on class: UseOfProceedsProvision
  min qualified cardinality: 0
subclass of: Restriction
  on property: has initial exchange date
  on class: ExplicitDate
  min qualified cardinality: 0
subclass of: Restriction
  on property: has maturity date
  on class: ExplicitDate
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasContractParty
  some values from: creditor
subclass of: Restriction
  on property: hasContractParty
  some values from: debtor
subclass of: Restriction
  on property: hasContractualElement
  some values from: debt terms
definition: contractual agreement in which a debtor receives something of value and typically agrees to repay the creditor by some date in the future, in some form (e.g., cash, securities, etc.), generally with interest

credit agreement repaid at maturity
type: Class
subclass of: credit agreement
subclass of: Restriction
  on property: has maturity date
  some values from: ExplicitDate
definition: credit agreement in which accrued interest may be periodically repaid or paid at maturity, but principal is paid at maturity
example: The most common example of a credit agreement repaid at maturity is a bond.

credit agreement repaid periodically
type: Class
subclass of: credit agreement
definition: credit agreement in which the principal and accrued interest may be periodically repaid or exchanged
example: Examples include revolving lines of credit, commercial loans, construction loans, residential mortgages and so forth.

credit enhancement agreement
type: Class
subclass of: CollateralAgreement
subclass of: Restriction
  on property: hasBeneficiary
  some values from: credit enhancement beneficiary
subclass of: Restriction
  on property: isProvidedBy
  some values from: ContractPrincipal
definition: collateral agreement that governs the exchange of collateral between parties to mitigate counterparty credit risk
explanatory note: A credit enhancement agreement ensures that collateral or a guarantee is established to secure obligations under the agreement. Features may include specification of the kinds of collateral or guarantee that may be used together with the relevant valuation methods, thresholds for the value of the collateral and haircuts applied based on mitigating market risk, margin requirements, dispute resolution with respect to collateral valuation and margin calls, and other operational details related to the transfer, substitution, and return of the collateral if established or posted.
synonym: collateralization
synonym: credit support agreement
synonym: financial collateral arrangement
synonym: margin arrangement

credit enhancement beneficiary
type: Class
subclass of: Beneficiary
subclass of: Counterparty
subclass of: Restriction
  on property: isPlayedBy
  some values from: Restriction
    on property: isAPartyTo
    on class: credit enhancement agreement
    min qualified cardinality: 0
definition: party that benefits from the collateral or guarantee established under the agreement, i.e., that is protected against counterparty credit risk because the collateral or guarantee serves as security for the obligation(s) owed to them

credit facility
type: Class
subclass of: credit agreement repaid periodically
subclass of: Restriction
  on property: hasConstituent
  on class: sub-facility
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasContractualElement
  on class: ConditionPrecedent
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasMonetaryAmount
  some values from: MonetaryAmount
definition: credit agreement that allows the borrower to periodically take out money over an extended period of time rather than reapplying for a loan every time they need funds
explanatory note: Credit facilities include revolving loans/lines of credit, committed facilities, letters of credit, and most retail credit accounts. They may define sub-facilities to which the lender is prepared to commit for specific purposes.
synonym: master commitment

creditor
type: Class
subclass of: Obligee
subclass of: Restriction
  on property: isPlayedBy
  all values from: LegalPerson
subclass of: Restriction
  on property: is owed
  some values from: debt
definition: a party to whom an obligation, such as an amount of money, or good, or performance of some service exists

day-count convention
type: Class
subclass of: BusinessRecurrenceIntervalConvention
subclass of: Expression
definition: a business recurrence interval convention that is used to calculate the number of days in an interest payment, which applies to the amount of accrued interest or the present value for debt instruments
explanatory note: Day-count conventions apply to swaps, mortgages and forward rate agreements as well as bonds, each of which has its own day-count convention, which varies depending on the type of instrument, whether the interest rate is fixed or floating, and the country of issuance. Among the most common conventions are 30/360 or 365, actual/360 or 365, and actual/actual. A 30/360 convention assumes 30 days in a month and 360 days in a year. An actual/360 convention assumes the actual number of days in the given month and 360 days in the year. An actual/ actual convention uses the actual number of days in the given interest period and year.

day-count convention 30/360 bond basis
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses 30 days in a month and 360 days in a year for calculating interest payments
explanatory note: See ISDA 2006 Section 4.16(f), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
synonym: 30A/360

day-count convention 30/360 US
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses 30 days in a month and 360 days in a year for calculating interest payments
explanatory note: See ISDA 2006 Section 4.16(f), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
explanatory note: This convention is used for US corporate bonds and many US agency issues. It is most commonly referred to as '30/360', but the term '30/360' may also refer to any of the other conventions of this class, depending on the context. See ISDA 2006 Section 4.16(f), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation
synonym: 30/360

day-count convention 30/365
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses 30 days in a month and 365 days in a year for calculating interest payments

day-count convention 30E/360
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses 30 days in a month and 360 days in a year for calculating interest payments
explanatory note: See ICMA Rule 251.1(ii), 251.2, and ISDA 2006 Section 4.16(g), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
synonym: 30/360 ICMA
synonym: 30S/360
synonym: Eurobond basis (ISDA 2006)
synonym: Special German

day-count convention 30E/360 ISDA
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses 30 days in a month and 360 days in a year for calculating interest payments
explanatory note: See ISDA 2006 Section 4.16(h), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
synonym: 30/360 ICMA
synonym: Eurobond basis (ISDA 2006)
synonym: German

day-count convention actual/360
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses the actual number of days in each month and 360 days in a year for calculating interest payments
explanatory note: See ICMA Rule 251.1(i) (not sterling), ISDA 2006 Section 4.16(e), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
explanatory note: This convention is used in money markets for short-term lending of currencies, including the US dollar and Euro, and is applied in ESCB monetary policy operations. It is the convention used with repurchase agreements.
synonym: French
synonym: a/360
synonym: act/360

day-count convention actual/365 fixed
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses the actual number of days in each month and 365 days in a year for calculating interest payments
explanatory note: See ISDA 2006 Section 4.16(d), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
synonym: English
synonym: a/365 fixed
synonym: a/365f
synonym: act/365 fixed

day-count convention actual/actual ICMA
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses the actual number of days in each month and actual number of days in that year for calculating interest payments
explanatory note: See ICMA Rule 251.1(iii), ISDA 2006 Section 4.16(c), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
explanatory note: This method ensures that all coupon payments are always for the same amount. It also ensures that all days in a coupon period are valued equally. This is the convention used for US Treasury bonds and notes, among other securities.
synonym: ISMA-99
synonym: act/act ICMA
synonym: act/act ISMA
synonym: actual/actual

day-count convention actual/actual ISDA
type: NamedIndividual
type: day-count convention
definition: day-count convention that uses the actual number of days in each month and actual number of days in that year for calculating interest payments
explanatory note: See ISDA 2006 Section 4.16(b), https://web.archive.org/web/20140913145444/http://www.hsbcnet.com/gbm/attachments/standalone/2006-isda-definitions.pdf for more details on the calculation.
explanatory note: This convention accounts for days in the period based on the portion in a leap year and the portion in a non-leap year.
synonym: act/365
synonym: act/act
synonym: actual/365
synonym: actual/actual

debt
type: Class
subclass of: Commitment
subclass of: Restriction
  on property: is owed by
  some values from: debtor
subclass of: Restriction
  on property: is owed to
  some values from: creditor
definition: obligation to pay something, such as an amount of money, good, service, or instrument
explanatory note: In cases where the debtor and payer are the same legal person, then a debt is equivalent to a payment obligation.

debt terms
type: Class
subclass of: ContractualCommitment
definition: contract terms that specify the formal rights and obligations of borrower and lender under a contract in which funds are lent from the one party to the other
explanatory note: These may be terms in a loan contract (including for example a mortgage contract) or they may be the contractual terms of a debt security.

debtor
type: Class
subclass of: Obligor
subclass of: Restriction
  on property: isPlayedBy
  all values from: LegalPerson
subclass of: Restriction
  on property: owes
  on class: debt
  min qualified cardinality: 0
definition: a party that owes a debt or other obligation to another party

explicit contract event schedule
type: Class
subclass of: AdHocSchedule
subclass of: Restriction
  on property: appliesTo
  some values from: credit agreement
definition: schedule of events, including but not limited to payment events, rate reset events and others that will occur over the lifetime of the credit agreement
explanatory note: This is a schedule of actual dates and events that are terms of the contract.

fixed interest rate
type: Class
subclass of: InterestRate
definition: interest rate that does not fluctuate over the lifetime of a loan or other debt instrument

floating interest rate
type: Class
subclass of: variable interest rate
definition: variable interest rate that is based on a specific index or benchmark rate
example: Certain revolving credit, such as credit-card related debt, may adjust after a specified period of time to an absolute rate stated in the agreement (variable but not floating) rather than based on a benchmark rate (variable, floating).
explanatory note: The index used to determine the specific interest rate is generally included in the terms of the loan. In most cases, lenders will also charge a spread, or added percentage points on top of the established index rate. If a loan is billed as prime plus 2.5 percent, for a prime rate of 3.5 percent, the terms of the loan will require the borrower to pay off a 6 percent interest. Floating interest rates typically involve periodic reset dates for the loan, particularly when the index rate changes. Resets may also occur online at market predetermined intervals, with yearly adjustments being a common arrangement.

full amortization
type: Class
subclass of: amortization
definition: amortization in which the very last payment (which, if the schedule was calculated correctly, should be equal to all others) pays off all remaining principal and interest on the loan

interest
type: Class
subclass of: MonetaryAmount
subclass of: Restriction
  on property: has interest rate
  all values from: InterestRate
subclass of: Restriction
  on property: hasDatePeriod
  all values from: DatePeriod
subclass of: Restriction
  on property: is interest on
  some values from: debt
definition: the cost of using credit, or another's money, expressed as a rate per period of time, payable by a debtor to a creditor in consideration of the credit extended to the debtor

interest calculation
type: Class
subclass of: ContractLifecycleEventOccurrence
subclass of: Calculation
subclass of: Restriction
  on property: has interest rate
  on class: InterestRate
  qualified cardinality: 1
subclass of: Restriction
  on property: hasMonetaryAmount
  on class: MonetaryAmount
  qualified cardinality: 1
definition: event reflecting the calculation of interest

interest calculation schedule
type: Class
subclass of: projected contract event schedule
subclass of: Restriction
  on property: hasOccurrence
  some values from: interest calculation
definition: regular, contract-specific schedule including the dates on which interest is calculated
explanatory note: The dates may be fixed, or relative to the corresponding interest payment date. It may be the same as the payment date, in arrears, or forward looking to the next interest payment.

interest payment
type: Class
subclass of: Payment
definition: event reflecting the actual payment of interest

interest payment schedule
type: Class
subclass of: projected contract event schedule
subclass of: PaymentSchedule
subclass of: Restriction
  on property: hasOccurrence
  some values from: interest payment
definition: regular, contract-specific schedule including the dates on which interest is due to be paid
explanatory note: The dates may be fixed, or expressed as an offset of the calculation dates. Typically the payment dates are fixed and calculation dates are expressed as an offset, however.

interest payment terms
type: Class
subclass of: debt terms
subclass of: Restriction
  on property: has accrual basis
  on class: day-count convention
  min qualified cardinality: 0
subclass of: Restriction
  on property: has interest rate
  on class: InterestRate
  min qualified cardinality: 0
subclass of: Restriction
  on property: has interest rate cap
  on class: InterestRate
  min qualified cardinality: 0
subclass of: Restriction
  on property: has interest payment day
  on class: DayOfMonth
  min qualified cardinality: 0
subclass of: Restriction
  on property: has compounding frequency
  on class: RecurrenceInterval
  min qualified cardinality: 0
subclass of: Restriction
  on property: has interest payment frequency
  on class: RecurrenceInterval
  min qualified cardinality: 0
subclass of: Restriction
  on property: has initial interest accrual date
  on class: Date
  min qualified cardinality: 0
subclass of: Restriction
  on property: has initial interest payment date
  on class: Date
  min qualified cardinality: 0
subclass of: Restriction
  on property: governs payment of
  some values from: interest
definition: contract terms for payment of interest on a debt
explanatory note: Interest is usually payable on any outstanding principal amount, therefore interest relates to the amount of debt outstanding at any given point of time, not to the principal amount advanced at the time that the loan was advanced or the debt security issued (aside from the initial payment).
explanatory note: Note that in most cases, the dates and payment frequencies for interest will coincide with the dates and payment frequencies related to the principal.

interest rate reset
type: Class
subclass of: interest calculation
definition: event reflecting a potential adjustment to an interest rate, typically corresponding to a change in the underlying benchmark interest rate or index specified in the contract
explanatory note: Note that depending on the contract, a rate reset can occur daily or on some other timetable, and depending on the underlying benchmark, the actual rate may or may not change. Rate resets may be associated with variable interest rate loans, scheduled reset dates for loans and other debt instruments, for example, interest rate swaps, certain kinds of bonds, and the like. The date on which interest is (re)calculated may be an explicit or date relative.

interest rate reset schedule
type: Class
subclass of: projected contract event schedule
subclass of: Restriction
  on property: hasOccurrence
  some values from: interest rate reset
definition: regular, contract-specific schedule including the dates on which a rate reset, and corresponding actual rate, is recalculated

interest rate setting event
type: Class
subclass of: interest calculation
definition: event on which an initial rate for a given contract is set, which may be relative the the occurrence of some other contract lifecycle event, such as the execution date

lease
type: Class
subclass of: credit agreement repaid periodically
definition: credit agreement permitting the use of real estate, equipment or another asset, such as a vehicle, by the owner of that asset (the lessor) to a user (the lessee) for a specific period of time in return for payment as specified in the agreement
explanatory note: The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for rental payments. The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree to the condition that the car will only be used for personal use.
synonym: lease agreement
synonym: lease contract

lender
type: Class
subclass of: creditor
subclass of: ContractParty
subclass of: Restriction
  on property: isPlayedBy
  some values from: Restriction
    on property: isAPartyTo
    some values from: credit agreement
definition: a party that extends credit or money to a borrower with the expectation of being repaid, usually with interest

managed interest rate
type: Class
subclass of: variable interest rate
subclass of: Restriction
  on property: isManagedBy
  some values from: FinancialServiceProvider
definition: variable interest rate charged by a financial institution for borrowing that is not prescribed as a margin over base rate but is set from time to time by the institution

motor vehicle lease
type: Class
subclass of: lease
definition: lease of a motor vehicle for a fixed period of time at an agreed amount of money
explanatory note: Motor vehicle leasing is commonly offered by dealers as an alternative to a vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business use, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2, 3 or 4 years) the vehicle has to either be returned to the leasing company or purchased for the residual value.

negative amortization
type: Class
subclass of: amortization
definition: amortization in which the payments made do not cover the interest due

non-physical collateral
type: Class
subclass of: collateral
subclass of: Restriction
  on property: is collateralization of
  on class: FinancialAsset
  min qualified cardinality: 0
disjoint with: physical collateral
definition: asset pledged as collateral that is a financial asset, rather than physical asset
example: Examples of non-physical collateral include, but are not limited to, bank deposits, accounts receivable, stocks, bonds, other securities, and the like.

partial amortization
type: Class
subclass of: amortization
definition: amortization in which the very last payment the last payment due may be a large balloon payment of all remaining principal and interest

physical collateral
type: Class
subclass of: collateral
subclass of: Restriction
  on property: is collateralization of
  on class: PhysicalAsset
  min qualified cardinality: 0
definition: asset pledged as collateral that has a material form, i.e., is a physical asset of the obligor
example: Examples of physical collateral include, but are not limited to, real estate, equipment, vehicles, spare parts, inventory, goods, supplies, fixtures, and leasehold improvements.

principal
type: Class
subclass of: Aspect
subclass of: Class
  union of: MonetaryAmount
  union of: NegotiableCommodity
subclass of: Restriction
  on property: is principal of
  some values from: debt
definition: with respect to a debt: the value of an obligation, such as a bond or loan, raised and that must be repaid at maturity; for investments: the original amount of money invested, separate from any associated interest, dividends or capital gains

principal payment
type: Class
subclass of: Payment
definition: event reflecting the actual payment of some amount of the principal of a debt

principal payment schedule
type: Class
subclass of: projected contract event schedule
subclass of: PaymentSchedule
subclass of: Restriction
  on property: hasOccurrence
  some values from: principal payment
definition: regular, contract-specific schedule including the dates on which some percentage or all of the principal is due to be (re)paid
explanatory note: The dates may be fixed, or expressed as an offset of the calculation dates. Typically the payment dates are fixed and calculation dates are expressed as an offset, however.

principal repayment terms
type: Class
subclass of: debt terms
subclass of: Restriction
  on property: hasExtensionProvision
  on class: ExtensionProvision
  max qualified cardinality: 1
subclass of: Restriction
  on property: has principal payment day
  on class: DayOfMonth
  min qualified cardinality: 0
subclass of: Restriction
  on property: has principal payment frequency
  on class: RecurrenceInterval
  min qualified cardinality: 0
subclass of: Restriction
  on property: has initial principal payment date
  on class: Date
  min qualified cardinality: 0
subclass of: Restriction
  on property: has principal repayment date
  on class: Date
  min qualified cardinality: 0
subclass of: Restriction
  on property: governs payment of
  some values from: principal
definition: contract terms that specify requirements for repayment of the principal

projected contract event schedule
type: Class
subclass of: RegularSchedule
subclass of: Restriction
  on property: appliesTo
  on class: credit agreement
  min qualified cardinality: 0
subclass of: Restriction
  on property: has anticipated number of payments
  min qualified cardinality: 0
  some values from: positiveInteger
definition: schedule of events, including but not limited to anticipated payment events, rate reset events and others that are expected to occur over the lifetime of the contract
explanatory note: A projected schedule is a regular schedule that documents the anchor dates and frequency of occurrences, using rules, rather than providing an explicit list of dates. This method will project future event dates (transaction event dates), based on the frequencies specified and may be adjusted due to calendar restrictions and other rules to deal with holidays, weekends, and so forth in addition to contract-specific events.

PromissoryNote
type: Class
deprecated: true

rate reset time of day
type: Class
subclass of: TimeOfDay
subclass of: Restriction
  on property: hasBusinessCenter
  on class: BusinessCenter
  min qualified cardinality: 0
definition: time of day that an interest rate is reset, as indicated by some interest rate authority or market data provider
example: Examples include certain rates published by the Federal Reserve Board in their H.15 schedule, which are published at 4:15 pm on business days that are not holidays in the US.

retail credit facility
type: Class
subclass of: committed credit facility
definition: credit facility that is a loan or line of credit used by retailers and real estate companies
example: Most consumer credit cards are retail credit facilities, for example.

revolving line of credit
type: Class
subclass of: committed credit facility
subclass of: Restriction
  on property: is collateralized by
  on class: collateral
  min qualified cardinality: 0
definition: credit facility that enables the borrower to withdraw funds, repay, and withdraw again
explanatory note: Revolving credit facilities are essentially lines of credit with variable interest rates.

security agreement
type: Class
subclass of: CollateralAgreement
definition: collateral agreement that grants a financial interest in some collateral to a party that is not an owner of that collateral, specifying terms including relative duties and rights, over and above those specified in the primary contract, regarding the disposition of the asset used as collateral
example: Examples include deeds of trust and uniform commercial code (UCC) agreements.
adapted from: ISO 20022

sub-facility
type: Class
subclass of: MutualContractualAgreement
subclass of: Restriction
  on property: isConstituentOf
  on class: credit facility
  qualified cardinality: 1
subclass of: Restriction
  on property: hasMonetaryAmount
  some values from: MonetaryAmount
definition: portion of a credit facility extended to the borrower for some purpose, possibly per some schedule specified in the facility
explanatory note: Each sub-facility may have separate terms, and may be or include individual promissory notes, depending on the facility. The amount of associated with the individual sub-facilities sums to the total credit facility amount. Sub-facilities may, individually, have a stated purpose, such as to cover inventory, equipment, accounts receivable, working capital, letters of credit, and so forth.

uncommitted credit facility
type: Class
subclass of: credit facility
definition: credit facility that has yet to be confirmed as a source of financing for the borrower

uncommitted sub-facility
type: Class
subclass of: sub-facility
definition: sub-facility that has yet to be confirmed as a source of financing for the borrower

variable interest rate
type: Class
subclass of: InterestRate
disjoint with: fixed interest rate
definition: an interest rate that is allowed to vary over the maturity of a loan or other debt instrument
synonym: adjustable rate

governs payment of
type: ObjectProperty
sub property of: governs
domain: debt terms
definition: links contractual terms embedded in a contract, such as interest or repayment terms to the element those terms apply to

has accrual basis
type: ObjectProperty
sub property of: hasBusinessRecurrenceIntervalConvention
range: day-count convention
definition: identifies the convention that defines how interest accrues on something, that is the number of days in a month and days in a year that are counted when performing interest accrual calculations

has amount of credit extended
type: ObjectProperty
sub property of: hasMonetaryAmount
definition: specifies the gross amount of credit that has been provided to the borrower as of a given point in time with respect to a specific agreement (e.g. for line of credit)

has anticipated number of payments
type: DatatypeProperty
sub property of: hasCount
range: positiveInteger
definition: specifies the number payments promised per the terms of the contract over the lifetime of the contract assuming all payments are made

has available amount
type: ObjectProperty
sub property of: hasMonetaryAmount
range: MonetaryAmount
definition: indicates an amount of money available for an individual or organization to borrow

has borrower
type: ObjectProperty
sub property of: hasContractParty
range: borrower
definition: relates a contract, such as a debt instrument or credit agreement, to one or more parties that are incurring the debt

has compounding frequency
type: ObjectProperty
sub property of: hasRecurrenceInterval
range: RecurrenceInterval
definition: the frequency at which interest is added to the principal of the debt over the course of the agreement

has credit limit
type: ObjectProperty
sub property of: hasMonetaryAmount
definition: specifies the maximum amount of credit that may be borrowed with respect to a specific agreement (e.g. for line of credit)

has debt amount
type: ObjectProperty
sub property of: hasMonetaryAmount
domain: credit agreement
range: MonetaryAmount
definition: indicates the monetary amount of the debt
explanatory note: Represents the total debt amount including principal and interest

has denomination
type: ObjectProperty
sub property of: hasMonetaryAmount
range: MonetaryAmount
definition: the face value of currency units, coins, or securities

has final interest payment date
type: ObjectProperty
sub property of: hasEndDate
range: Date
definition: the date on which the last interest payment is due

has initial exchange date
type: ObjectProperty
sub property of: hasExplicitDate
sub property of: hasStartDate
range: ExplicitDate
definition: indicates the specific date when the initial exchange of assets or funds takes place
abbreviation: IED
explanatory note: For a credit agreement, this is the initial funding date, such as the funding of the principal amount, or a portion thereof, but for other kinds of instruments, it may be something else. In the context of contracts related to swaps, options, or other derivative instruments, the initial exchange date marks the point where the parties legally commit to the terms of the agreement and exchange the initial required amounts.

has initial interest accrual date
type: ObjectProperty
sub property of: hasStartDate
range: Date
definition: the date from which interest begins to accrue
synonym: has dated date

has initial interest payment date
type: ObjectProperty
sub property of: hasStartDate
range: Date
definition: the date on which the first interest payment is due

has initial principal payment date
type: ObjectProperty
sub property of: hasStartDate
range: Date
definition: the date on which the first payment against the principal is due

has interest payment day
type: ObjectProperty
sub property of: hasRecurrenceInterval
range: RecurrenceInterval
definition: the day of the month on which interest payments must be made on the debt

has interest payment frequency
type: ObjectProperty
sub property of: hasRecurrenceInterval
range: RecurrenceInterval
definition: the frequency at which interest payments must be made on the debt

has interest rate
type: ObjectProperty
sub property of: hasQuantityValue
range: InterestRate
definition: relates something, such as an agreement, or debt instrument, to the rate (typically annual) of interest that is to be paid by the debtor to the creditor on the debt

has interest rate cap
type: ObjectProperty
sub property of: has interest rate
range: InterestRate
definition: relates something, such as an agreement, or debt instrument, to the upper bound (ceiling) rate (typically annual) of interest on variable-rate debt that is to be paid by the debtor to the creditor on the debt

has lender
type: ObjectProperty
sub property of: hasContractParty
range: lender
definition: relates a contract, such as a debt instrument or credit agreement, to one or more parties that are financing the debt

has maturity date
type: ObjectProperty
sub property of: hasEndDate
sub property of: hasExplicitDate
range: ExplicitDate
definition: indicates the date on which the principal amount of an instrument is due to be repaid to the investor and interest or coupon payments stop, and/or the date on which the instrument may be redeemed
explanatory note: Maturity dates typically apply to debt instruments, such as notes, drafts, bonds, and other loans, but may also apply to preferred shares and other financial instruments.

has maximum advance amount
type: ObjectProperty
sub property of: hasMonetaryAmount
definition: specifies the ceiling on the amount of credit that can be drawn by the borrower in a single request with respect to a specific agreement (e.g. for line of credit) within the specified credit limit

has time to maturity
type: ObjectProperty
sub property of: hasDuration
range: ExplicitDuration
definition: indicates the lifespan of credit agreement or offering, from the date of issuance to the scheduled maturity date
synonym: has term to maturity

has outstanding amount
type: ObjectProperty
sub property of: hasMonetaryAmount
range: MonetaryAmount
definition: indicates an amount of money representing the principal, interest, or other amount owed at a specific point in time

has principal
type: ObjectProperty
range: principal
definition: indicates the face value of an obligation, such as a bond or loan, that must be repaid at maturity, i.e., the base amount raised by a mortgage or other debt instrument

has principal payment day
type: ObjectProperty
sub property of: hasRecurrenceInterval
range: RecurrenceInterval
definition: the day of the month on which payments on the principal must be made

has principal payment frequency
type: ObjectProperty
sub property of: hasRecurrenceInterval
range: RecurrenceInterval
definition: the frequency at which payments on the principal must be made

has principal repayment date
type: ObjectProperty
sub property of: hasEndDate
domain: principal repayment terms
range: Date
definition: relates an instrument to the date by which the principal must be repaid in full
explanatory note: Depending on the terms of the instrument (debt security, such as a bond, loan, etc.), this may be the date of a single payment of the debt principal or of the completion of scheduled partial redemption payments.

is amortization of
type: ObjectProperty
domain: amortization
definition: links the process of reduction of debt or other costs through periodic charges to the relevant asset or liability

is based on
type: ObjectProperty
sub property of: appliesTo
definition: relates something to something else on which it rests, or that supports it in some way

is collateralization of
type: ObjectProperty
domain: collateral
definition: relates some collateral to an agreement pledging the asset as security

is collateralized by
type: ObjectProperty
range: collateral
definition: relates an agreement to an asset pledged as security

is interest on
type: ObjectProperty
domain: interest
definition: links a monetary amount that is the cost of using credit to the debt that it applies to

is owed
type: ObjectProperty
domain: creditor
range: debt
definition: links a creditor to a debt that is outstanding and payable to them

is owed by
type: ObjectProperty
domain: debt
range: debtor
inverse of: owes
definition: links a debt to the party that owes it

is owed to
type: ObjectProperty
domain: debt
range: creditor
definition: links a debt to the party to which it is payable

is principal of
type: ObjectProperty
domain: principal
definition: links the value of a debt, excluding any interest or other costs of using credit, to the debt that it applies to

owes
type: ObjectProperty
domain: debtor
range: debt
definition: links a party to a debt that they owe

CollateralAgreement
type: Class
subclass of: Restriction
  on property: is collateralized by
  on class: collateral
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasEstimatedValue
  some values from: MonetaryAmount