Must we require our loan customers to make an interest payment at least annually?
A lender wrote a commercial single pay note for 14 months. Interest will be paid at the end of the loan. Senior management thinks that they remember there being an IRS or GAAP issue requiring at least an annual interest payment, but I cannot put my finger on it. I do not believe that there is a regulatory requirement, but do you have any thoughts?
Or is it just a good practice?