Common use of Discount Factor Clause in Contracts

Discount Factor. With respect to each Finance Lease, the higher of (i) the implicit interest rate applicable to such Finance Lease, as such interest rate is determined by the Borrower in accordance with GAAP applied on a consistent basis, and (ii) the Lenders’ cost of funds (or, if such Finance Lease is the subject of an Interest Rate Hedging Agreement, the fixed rate payable under such agreement) in relation to such Finance Lease plus 100 basis points (1.00%).