Unpaid Principal [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 1422 (6) [Title 12. Banks and Banking; Chapter 11. Federal Home Loan Banks], the term unpaid principal, when used in respect of a loan secured by a home mortgage means “the principal thereof less the sum of (1) payments made on such principal, and (2) in cases where shares or stock are pledged as security for the loan, the payments made on such shares or stock plus earnings or dividends apportioned or credited thereon.”