Legal Dictionary
Main Entry:
nom·i·nalPronunciation:
'nä-m&n-&lFunction:
adjective 1 : existing or being something in name or form but usually not in reality
nominal defendant in a derivative suit —Railroad C. Clark>
2 : being so small or trivial as to be a mere token nominal fee>
3 of a rate of interest a : equal to the annual rate of simple interest that would obtain if interest were not compounded when in fact it is compounded and paid for periods of less than a year b : equal to the percentage by which a repaid loan exceeds the principal borrowed with no adjustment made for inflation —compare EFFECTIVE 4 —nom·i·nal·ly adverb