Finance
A Washington commercial loan with a 'yield maintenance' prepayment penalty requires the borrower who prepays to:
APay the remaining interest at a discount
BPay the lender the present value of the remaining interest payments to maintain the lender's expected yield✓ Correct
COnly pay a flat fee equal to 3 months' interest
DPay nothing if they refinance with the same lender
Explanation
A yield maintenance clause requires the borrower to pay the lender the present value of remaining interest payments when prepaying, ensuring the lender receives the same economic benefit they would have received if the loan had continued to maturity.
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