Reduction in Interest Rate Clause Samples
A Reduction in Interest Rate clause allows for the lowering of the interest rate applied to a loan or financial obligation under certain conditions. Typically, this clause specifies the circumstances that trigger the rate reduction, such as timely payments, improved creditworthiness, or meeting specific financial covenants. Its core practical function is to incentivize positive borrower behavior and reward compliance, while also providing a mechanism for adjusting financial terms to reflect reduced risk or improved financial standing.
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Reduction in Interest Rate. Notwithstanding any of the provisions contained in Section 2.A.(2) above, provided that no Event of Default has occurred and is continuing, if on March 31, 1999 Identix is in compliance with all of the financial covenants set forth in Section 10 hereof, then beginning on April 1, 1999, Bank agrees to reduce the rate of interest accruing on the unpaid balance of the Revolving Loan Account to a rate of interest per annum equal to the Prime Rate.
Reduction in Interest Rate. Subject to the fulfillment of the conditions precedent set forth in Section 6 hereof, Lender agrees to reduce the interest rate on the Loan, effective as of January 1, 1997, from the Prime Rate (as defined in Section 7(i) of the First Loan Modification) plus two percent (2%) to the lesser of (a) the Prime Rate plus two percent (2%) or (b) Libor Rate (as defined below) plus two and one-half percent (2.5%). The "Libor Rate" means the one-month London Interbank Offered Rate as published in the Wall Street Journal by Dow Jone▇ & ▇ompany, Inc.
Reduction in Interest Rate. The portion of Section 2 of the Schedule to the Loan Agreement, which presently reads as follows: “A rate equal to the Prime Rate in effect from time to time, plus 2% per annum, provided that the interest rate in effect on any day shall not be less than 6% per annum, and provided that interest in each month shall not be less than $20,000.” is hereby amended to read as follows: “A rate equal to the Prime Rate in effect from time to time, plus 1% per annum.”
Reduction in Interest Rate. To the extent that at the close of business on August 20, 2016, the balance of the Deposit Account is equal to or greater than $12,190,054.62 (or such lesser amount required to be on deposit in the Deposit Account under the February Convertible Note) and the balance of the Blocked Account is equal to or greater than $4,000,000 (or such lesser amount required to be on deposit in the Blocked Account under the December Debenture), in each case, as a result of deposits of funds to each such account by a Borrower, at such Borrower’s option, then the rate of interest in effect on each JGB Note shall be 1.17%; provided, there shall be no reduction in any default rate of interest specified in a JGB Note (regardless of whether or not such default rate is in effect at such time). For the avoidance of doubt, to the extent of any release of funds subsequent to August 20, 2016, pursuant to Section 3.3, the rate of interest for each JGB Note shall be increased as provided in Sections 4.1 through 4.4. For the avoidance of doubt, the Borrowers are under no obligation to return any funds released pursuant to Section 3 to the Blocked Account or Deposit Account.
Reduction in Interest Rate. Paragraph 2.3 of the Agreement is hereby amended be deleting "Reference Rate plus one percent (1%)" and inserting "Reference Rate plus zero percent (0%)" in lieu thereof.
Reduction in Interest Rate. The interest rate required hereby or by any of the Purchase Documents shall not exceed the maximum rate permissible under applicable law, and any amounts paid in excess of such rate shall be applied to reduce the unpaid balance of the Indebtedness or shall be refunded to the Company at the sole option of the Purchaser.
Reduction in Interest Rate. Notwithstanding anything to the contrary contained herein above in this Section 2.5(a), if (i) Borrowers achieve EBITDA in the amount set forth in the chart below for any fiscal year of Borrowers, commencing with the fiscal year ending June 30, 2000, as evidenced by financial statements for Borrowers that have been prepared and audited by independent certified public accountants acceptable to Foothill and delivered to Foothill in accordance with Section 6.3, (ii) if Foothill has determined that the Inventory of the West Coast Companies constitutes Eligible Inventory (in accordance with clauses (f) and (g) of the definition of Eligible Inventory set forth in Section 1), and (iii) if Foothill has determined that none of the Loan Parties identified in the chart set forth below have failed to complete the implementation of the ▇.