Maturity is the date on which a term obligation comes to an end.
Although the term is used in various fields, such as production and consumption, the academic environment and many others, in maturity economics it refers to the date of payment of a financial obligation.
The expiration date is the one in which a term stipulated by two or more parties ends and because of which, the parties involved must comply with their contractual obligations. In most cases, maturity implies some type of economic or financial payment or settlement.
For example, in the articulation of a rental contract, the expiration takes place when the predetermined conditions in it expire and, therefore, the lease or rental contract ceases to be valid. Tenants must leave the rented apartment or premises, or renegotiate the conditions of the contract, as the owner deems it.
Another common due date is for the payment of credits or other payments for goods and services. The expiration is the moment of each month or instance of the term in which one of the parties must pay a certain amount of money. Maturities are often used for the payment of services, installments or loans of various kinds.
Due dates can often be flexible, and if the party does not cancel the payment on the appropriate date, they are given another opportunity a little later to cancel the payment.
If the expiration date is not respected, the buyer or contractual party may suffer fines or penalties and even legal penalties. All this is determined in advance in the contract between the interested parties. On the occasion that the obligor cannot cover the required amount, his assets may be seized.
