Amortization*

2015 07 01 | Category: Offshore Glossary

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Amortization*
The gradual elimination of a liability (a loan), such as a mortgage through installed regular payments over a period of the estimated life of the asset on which the loan is made or secured. Such payments must be sufficient to cover both principal and interest. For fixed assets, depreciation is the allowance for wear-out. For natural resources, depletion is the allowance for the wasting away of the asset.


EditorAmortization*