The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CAP AGREEMENT Definition & Legal Meaning

Definition & Citations:

A borrowing agreement in which the person who received the loan pays a cap fee so that they can keep the interest rate below a specified limit regardless of the market rate.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.