Calculation of interest – Compounded Rate Loans Sample Clauses
The 'Calculation of interest – Compounded Rate Loans' clause defines how interest is calculated on loans where interest accrues on a compounded basis rather than a simple rate. Typically, this means that interest is periodically added to the principal, so future interest calculations include previously accrued interest, and the clause will specify the compounding frequency (such as daily, monthly, or quarterly) and the reference rate used. This approach ensures that both parties understand how interest obligations will grow over time, providing clarity and predictability in financial obligations and preventing disputes over interest calculations.
Calculation of interest – Compounded Rate Loans. (a) The rate of interest on each Compounded Rate Loan for any day during an Interest Period is the percentage rate per annum which is the aggregate of the applicable:
(i) Margin; and
(ii) Compounded Reference Rate for that day.
(b) If any day during an Interest Period for a Compounded Rate Loan is not a RFR Banking Day, the rate of interest on that Compounded Rate Loan for that day will be the rate applicable to the immediately preceding RFR Banking Day.
Calculation of interest – Compounded Rate Loans. The rate of interest on each Compounded Rate Loan for any day during an Interest Period is the percentage rate per annum which is the aggregate of the applicable:
Calculation of interest – Compounded Rate Loans. (a) In relation to each Interim Loan that is a Compounded Rate Loan in a Compounded Rate Currency for any day during an Interest Period is the percentage rate per annum which is the aggregate of the applicable:
(i) Margin; and
(ii) Compounded Reference Rate for that day for that Compounded Rate Currency.
(b) If any day during an Interest Period for a Compounded Rate Loan in a Compounded Rate Currency is not an applicable RFR Banking Day in relation thereto, the rate of interest on that Compounded Rate Loan for that day will be the rate applicable to the immediately preceding RFR Banking Day.
Calculation of interest – Compounded Rate Loans. (a) The rate of interest on each Compounded Rate Loan for any day during an Interest Period is the percentage rate per annum which is the aggregate of the applicable:
(i) Margin; and
(ii) Compounded Reference Rate for that day, (the sum of paragraphs (i) and (ii) above being referred to in this Clause 12 as the “Compounded Rate Loan Interest Rate” and, together with the Term Rate Loan Interest Rate, the “Interest Rate”).
(b) If any day during an Interest Period for a Compounded Rate Loan is not an RFR Banking Day, the Compounded Rate Loan Interest Rate for that day will be the rate applicable to the immediately preceding RFR Banking Day.