Modified Following

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Dictionary Says

Definition of 'Modified Following'

A contractual feature in an exchange involving the implied automatic change of one or more set dates within the arrangement, such as the payment date. Modified following is used to streamline the exchange process.
Investopedia Says

Investopedia explains 'Modified Following'

An example of modified following is the business day convention. This implied rule states that if the payment date on a swap or other contractual transaction does not fall on a banking day, then the modified following date will be the next banking day unless that banking day extends into a new month, in which case the banking day that precedes the payment date is used.

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