Common use of OPTIONAL RATE Clause in Contracts

OPTIONAL RATE. Provided that no Default or Event of Default exists, Borrower may elect that Portions (as defined in Section 5.2(b)) of the loans hereunder will bear interest at the Offshore Rate in accordance with this Section 5. The Offshore Rate is a rate per annum based upon a year of 360 days and the actual number of days elapsed. Interest will be paid on the last day of each interest period, and, if the interest period is longer than one month, then on the last business day of each calendar month during the interest period. At the end of any interest period, the interest rate will revert to the Reference Rate, unless Borrower has designated another optional interest rate for the Portion. Subject to Section 8.10, no Portion will be converted to a different interest rate during the applicable interest period. Upon the occurrence of a Default or Event of Default under this Agreement, Bank may terminate the availability of optional interest rates for interest periods commencing after a Default or Event of Default occurs.