annual cap

annual cap definition - business

annual cap

The amount a variable-rate loan can increase during a calendar year. For example, an adjustable-rate loan may specify an annual cap for the amount the interest rate can be increased. Some states have instituted annual caps for property tax rates.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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