Common use of Changes in Law Rendering LIBOR Loans Unlawful Clause in Contracts

Changes in Law Rendering LIBOR Loans Unlawful. In the event that after the date hereof it shall be unlawful for Secured Party, in the reasonable determination in good faith of Secured Party, to make or maintain any Advance as an Advance bearing interest at LIBOR, Secured Party shall, upon the occurrence of such event, notify the Debtor in writing, stating the reasons therefor; provided, however, that before giving any such notice, Secured Party shall use reasonable good faith efforts to designate a different Eurodollar Lending Office to make or maintain such Advance as an Advance bearing interest at LIBOR if such designation will avoid the need for giving such notice and will not be otherwise materially disadvantageous to the Secured Party. Upon receiving a notice of any such event, the Debtor shall have the following options, one of which must be exercised: (i) to prepay immediately all of the Advances which are so affected; or, (ii) convert all affected Advances (including accrued interest thereon) to Advances based on the rate of interest based on the Prime Rate.