Determination of Interest Rates Clause Samples
The Determination of Interest Rates clause establishes how interest rates are set and adjusted within an agreement. Typically, it outlines the reference rate (such as LIBOR or a central bank rate), any applicable margins or spreads, and the frequency at which the rate is reviewed or updated. For example, the clause may specify that the interest rate is calculated as the prime rate plus a fixed percentage, and is recalculated quarterly. This clause ensures transparency and predictability in the calculation of interest, reducing disputes and providing both parties with a clear understanding of their financial obligations.
Determination of Interest Rates. Subject to the provisions of applicable law and regulations and any regulatory undertakings binding on the Administrator or the Issuer from time to time and subject to the following provisions of this Clause 4, the Mortgages Trustee and each of the Beneficiaries each hereby grants the Administrator full right, liberty and authority from time to time to determine:
(a) in accordance with the applicable Mortgage Conditions, Mortgage Terms and the Base Rate Pledge, the Standard Variable Rate and any other discretionary rates and margins applicable to the Mortgage Loans chargeable to Borrowers from time to time; and
(b) the Existing Borrowers' Re-Fix Rate in accordance with Clause 4.4 herein. In exercising such right, liberty and authority the Administrator undertakes to each of the other parties to this Agreement that it shall not at any time set or maintain the Standard Variable Rate and any other discretionary rates and margins applicable to the Mortgage Loans at rates which are higher than the then prevailing equivalent rates offered by the Seller, unless the Administrator is required to do so pursuant to Clause 4.3 herein, and, subject to that requirement, that it shall not change the Standard Variable Rate and any other discretionary rates and margins applicable to the Mortgage Loans save for the same reasons as the Seller was entitled, under the Mortgage Conditions, to change the then prevailing equivalent rates offered by the Seller prior to the sale and assignment to the Mortgages Trustee of the Mortgage Loans comprised in the Mortgage Portfolio and their Related Security. Each of the Issuer and the Security Trustee shall be bound by any Mortgage Rates (including the Existing Borrowers' Re-Fix Rate) determined by the Administrator in accordance with this Clause 4.
Determination of Interest Rates. The New Mode for a 2025 Series G-2 Bond shall commence on the Mode Change Date for such Bond and the interest rate shall be determined by the Remarketing Agent (or the Authority in the case of the Interest Period for a 2025 Series G-2 Bond converted to the Term Rate Mode) in the manner provided in Sections 2.7 and 2.8 of this Series Indenture, as applicable.
Determination of Interest Rates. (i) The Agent shall give prompt notice to the Borrower and each other member of the Bank Group of the applicable interest rate determined by the Agent hereunder for each Borrowing. Each determination by the Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.
(ii) If the Majority Banks shall, at least one Business Day before the date of any requested Eurodollar Rate Borrowing, notify the Agent that the Eurodollar Rate applicable to such Borrowing will not adequately reflect the cost to such Banks of making, funding or maintaining their respective Eurodollar Rate Loans for such Borrowing, the right of the Borrower to select Eurodollar Rate Loans for such Borrowing or any subsequent Borrowing shall be suspended until the Agent shall notify the Borrower and each other member of the Bank Group that the circumstances causing such suspension no longer exist, and each Loan comprising such Borrowing shall be made as, or Converted into, as applicable, a Base Rate Loan.
Determination of Interest Rates. Subject to the terms and conditions of the Note and this Addendum, Borrower, at its option, may request an advance in the form of a Libor Loan, a continuation of a Libor Loan, or a conversion of a Prime Loan into a Libor Loan, only upon delivery to Bank of an irrevocable written notice received by Bank at least three (3) Business Days prior to the requested Loan Date, specifying (i) the principal amount of such Libor Loan, (ii) the requested Loan Date, and (iii) the selected Interest Period. Upon receiving such notice, Bank shall determine (which determination shall be in accordance with Section 2.1 and shall, absent manifest error, be final, conclusive and binding upon all parties hereto) the Libor Rate applicable to such Libor Loan two (2) Business Days prior to the Loan Date, and shall promptly give notice thereof (in writing or by telephone confirmed in writing)
Determination of Interest Rates. The interest rate and, in the case of a floating interest rate, the Spread (if any), and the Spread Multiplier (if any), for any Note shall be established by the applicable Remarketing Agent in a remarketing as provided for in Section 207 hereof or otherwise not later than the first day of each succeeding Interest Rate Period for such Note, which must be a Business Day (each an "INTEREST RATE ADJUSTMENT DATE"), and will be the minimum rate of interest and, in the case of a floating interest rate, Spread (if any) and Spread Multiplier (if any) necessary in the judgment of such Remarketing Agent to produce a par bid in the secondary market for such Note on the date the interest rate is established. Such rate will be effective for the next succeeding Interest Rate Period for such Note commencing on such Interest Rate Adjustment Date. In the event that (i) the applicable Remarketing Agent has been removed or has resigned and no successor has been appointed; or (ii) such Remarketing Agent has failed to announce the appropriate interest rate, Spread (if any) or Spread Multiplier (if any), as the case may be, on the Interest Rate Adjustment Date for any Note for whatever reason; or (iii) the appropriate interest rate, Spread (if any) or Spread Multiplier (if any), as the case may be, or Interest Rate Period cannot be determined for any Note for whatever reason, then the next succeeding Interest Rate Period for such Note shall be automatically converted to a Weekly Rate Period, and the rate of interest thereon will be equal to the Federal Funds Rate (such rate of interest being referred to herein as the "SPECIAL INTEREST RATE"). After any Interest Rate Adjustment Date any Beneficial Owner may contact the Trustee or the Remarketing Agent in order to be advised of the interest rate applicable to such Beneficial Owner's remarketed Notes. No notice of the applicable interest rate will be sent to Beneficial Owners. The interest rate and other terms announced by the Remarketing Agent, absent manifest error, shall be binding and conclusive upon the Beneficial Owners, the Company and the Trustee.
Determination of Interest Rates. 9.10.1 Each determination by the Administrative Agent from time to time of the Canadian Rate, the US Base Rate, LIBO Rate, any Discount Rate shall, in the absence of manifest error, be final, conclusive and binding upon the Borrower and the Lenders.
9.10.2 For the purposes of the Interest Act (Canada):
9.10.2.1 whenever any interest or fee under this Agreement is calculated using a rate based on a year of 360 days or 365 (or 366 in a leap year) days, such rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (a) the applicable rate based on a year of 360 days or 365 (or 366 in a leap year) days, as the case may be, (b) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (c) divided by 360 or 365 (or 366 in a leap year) as the case may be;
9.10.2.2 the principle of deemed reinvestment of interest does not apply to any interest calculation under this Agreement; and
9.10.2.3 the rates of interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields.
Determination of Interest Rates. The New Mode for such Bonds shall commence on the Mode Change Date, and the interest rate(s) (together, in the case of a change to the Commercial Paper Mode, with the Interest Period(s) and Purchase Date(s)) with respect to such Bonds shall be determined by the Remarketing Agent for such Bonds in the manner provided in Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09 or 2.10 as applicable.
Determination of Interest Rates. The Remarketing Agent shall determine the interest rates on the Bonds in the manner and at the times specified therefor in the Indenture.
Determination of Interest Rates. The New Mode shall commence on the Mode Change Date and the interest rate(s) (together, in the case of a change to the Flexible Mode, with the Interest Period(s)) shall be determined by the Remarketing Agent (or the Company in the case of the Interest Period for the Bonds converted to the Term Rate Mode) in the manner provided in Sections 505, 506 and 507 and in Article IV 69 hereof, as applicable.