# Amortized Asset

**IRI:** https://folio.openlegalstandard.org/RL7IXFcChVOHHB88Tedz3a

## Labels

**Preferred Label:** Amortizing Financial Instrument

**Alternative Labels:**

- Amortization Loan
- Amortizing Asset
- Installment Payment Asset

## Definition

An Amortized Asset is a financial instrument where the principal amount is gradually reduced through regular payments over the life of the asset. These payments typically include both interest and principal, leading to a decrease in the outstanding balance until the loan is fully repaid by the maturity date.

## Sub Class Of

- https://folio.openlegalstandard.org/R7NbRiaFKuXbP6fYk436pb2

**Deprecated:** False