Early Repayment

If the early repayment options repays the principal amount before maturity (prepayment effect 1, see Prepayment Effects section), the D-ASA MUST implement the OPTIONAL early_repayment method.

In the case of an on-chain payment agent, the D-ASA MUST repay the principal to the Investor Payment Addresses.

The D-ASA units associated with the early repaid principal MUST be removed from Investors’ Accounts and from circulation.

📎 EXAMPLE

Let’s have a D-ASA denominated in EUR, with a principal of 1M EUR and a minimum denomination of 1,000 EUR. The D-ASA originally had 1,000 total units in circulation. An early repayment of 500k EUR (equal to 500 units) is executed for some Investors. The D-ASA now has 500 circulating units (worth 1,000 EUR each), while 500 early repaid units are removed from circulation.