Common use of Interest Option Clause in Contracts

Interest Option. (a) Borrower may elect that any of the Revolving Loans to be made hereunder shall be a Euro Rate Loan, to continue any existing Euro Rate Loan as a new Euro Rate Loan or to convert any Prime Rate Loan to a LIBOR Rate Loan, by giving irrevocable written notice of such election to Agent by 10:00 a.m. (New York City time) at least three (3) Business Days prior to the requested Commencement Date and, in the case of the continuation of any Euro Rate Loan, such continuation shall take place on the last day of the applicable LIBOR Period with respect to the Euro Rate Loan being so continued. Such notice of election shall be given to Agent in a Record from Borrower. Each such request for a Euro Rate Loan, or to continue or convert (in the case of a Prime Rate Loan) shall include the requested Commencement Date (which shall be a Business Day), the LIBOR Period selected and the amount of the Euro Rate Loan to be made or continued, or into which a Prime Rate Loan is to be converted (which shall be in a principal amount of not less than (x) in the case of Dollar Denominated Revolving Loans, $1,000,000 and integral multiples of $500,000 and (y) in the case of Euro Denominated Revolving Loan, €1,000,000 and integral multiples of €500,000). If no Default nor Event of Default has occurred and is continuing at such time, such Euro Rate Loan shall be made or continued, or such Prime Rate Loan shall be converted, on the requested Commencement Date. In no event shall there be more than ten (10) Euro Rate Loans in effect at any time. (b) If upon the expiration of any LIBOR Period applicable to a borrowing of Euro Rate Loans, the Borrower has failed to elect, or is not permitted to elect, a new LIBOR Period to be applicable to such Euro Rate Loans as provided above, the relevant Borrower shall be deemed to have elected (x) if LIBOR Rate Loans, to convert such LIBOR Rate Loans into Prime Rate Loans and (y) if Euro Denominated Revolving Loans, to select a one-month LIBOR Period for such Euro Denominated Revolving Loans, in any such case effective as of the expiration date of such current LIBOR Period. (c) The Agent shall not incur any liability to Borrower in acting upon notice referred to herein which Agent reasonably believes to have been given by a duly authorized officer or other person authorized to and on behalf of Borrower or for otherwise acting under Section 2.1(b) or otherwise herein.