Definition of delinquency and prepayment fees
Delinquency fees are the penalties for late payments.
For example, a debtor might be assessed a total fee proportional to the number of days (months) the payment is delinquent. In accordance with US GAAP,delinquency fees are recognized when chargeable, provided the collectability is reasonably assured.
Prepayment fees are the penalties for paying in excess of the scheduled payment.
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