Loan requiring only interest payments until the last day of its term, at which time the full payment is due. Intermediate - to long-term (usually, 2 to 10 years) collateralized loan granted to a business by a commercial bank, insurance company, or commercial finance company such as to finance the purchase of real estate. The loan is amortized over a fixed period.
A provision in a sales contract that allows the buyer to have the property inspected for termite infestation. In general, if termites are discovered, the buyer may require the seller to treat the property or the buyer may cancel the contract. Most clauses now use the term wood-destroying insects to protect against other types of insects that harm structures, such as the powder post beetle and old house borer.
Aluminum or metal treated barrier that is placed between the concrete and wood of the foundation of a newly constructed building to prevent termites from infesting the wood. Many experts say that such a shield is ineffective because the termites simply go around the shield to get to the wood in the foundation.
Having the intellect to comprehend the terms and conditions of a will and their impact. A testator must understand his or her estate and its eventual disposition and effects in order to validate the will.