the original sum of money loaned under a loan agreement
The proposed legislation will help investors recover principal money secured by a charge on land or personal property.
Definitions & Examples
the original sum of money loaned under a loan agreementThe proposed legislation will help investors recover principal money secured by a charge on land or personal property.
a person who uses another to act as his or her representativeAn agent cannot bind its principal when it exceeds (= goes beyond) the limits of its authority.
- principal amount
- principal money
- You deposit a principal amount with a bank (or large building society) and at the end of the maturity period you are repaid the principal, with interest.
- Zaharoff was retained as principal overseas agent.
- In fact, evidence indicates that former principals of Sotheby's acquired ownership.
- She is a former Principal of St. Anne's College.
- When principal is used to mean primary, chief or most important, it is both a noun and an adjective, though usually an adjective in non-legal usage: A faulty gasket was the principal reason for the engine's failure.
- In general usage, principal refers to a person who plays an important role or holds a high position. In legal and financial English principal is often a noun (derived from principal person). In the law of agency, the principal is the one on whose behalf the agent acts: She attended the meeting as the agent of a principal who wished to remain anonymous.
- In banking the principal (sum) is money invested or borrowed on which interest is paid: The borrower was only able to make the minimum payment, which covered the interest but did not reduce the principal.
Principal and principle are often confused as they have the same pronunciation, but have different meanings.
Principle means doctrine, standard, rule, or law, and is nearly always used as a noun: A principle of management is to treat your employees as you want them to treat your customers.