amortize

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amortize

[′am·ər‚tīz]
(industrial engineering)
To reduce gradually an obligation, such as a mortgage, by periodically paying a part of the principal as well as the interest.
References in periodicals archive ?
An individual who purchased a taxable bond at a premium (that is, at an amount in excess of its face value), whether or not on original issue, may elect to amortize the premium over the remaining life of the bond (or in some cases, until an earlier call date).2 If the election to amortize bond premium is not made, the premium is recovered as part of the owner's basis in the bond, if the bond is sold for as much as or more than it cost, or is deducted as a capital loss if the bond is redeemed at face value or sold for less than the basis.
The election to amortize applies to all taxable bonds that are owned at the beginning of the first year to which the election applies and all bonds acquired thereafter, and may be revoked only with the consent of the Service.
(5) The taxpayer is not required to amortize premium on taxable bonds just because he has tax-exempt bonds that he is amortizing.
Taxpayers who elected to amortize premium on bonds acquired after October 22, 1986 and before January 1, 1988 could elect to use either the deduction or the offset method.
The 10year refinance loan amortizes on a 30-year schedule.
The nine-year equity loan amortizes on a 30-year schedule.