TREASURY RATE OPTION Sample Clauses

The Treasury Rate Option clause defines the use of a specific interest rate, typically based on U.S. Treasury securities, as a benchmark for calculating payments or adjustments under an agreement. In practice, this clause allows parties to reference the yield of a designated Treasury instrument—such as a 10-year Treasury note—when determining interest rates for loans, prepayment penalties, or other financial obligations. By specifying the Treasury Rate as the standard, the clause ensures a transparent, market-based reference point, reducing ambiguity and aligning financial terms with widely recognized benchmarks.
TREASURY RATE OPTION. As to any Portion or Portions of the Loan selected by the Borrower, interest shall accrue pursuant to this fixed rate option at a fixed annual interest rate (a "Treasury Rate") equal to the sum of the U.S. Treasury Rate (as hereinafter defined) plus a margin (the "Treasury Margin") equal to 1.75% (subject to Subsection (B)). Under this option, the interest rate on any Portion of the Loan, in minimum amounts of $100,000, may be fixed for a period (any such period, and any period selected pursuant to Subsection (A)(2)(b), an "Interest Period") of one year or more but not beyond the Maturity Date (as defined in Section 5); provided, however, that such Interest Period may expire only on a Business Day; and provided further, however, that each Portion of the Loan accruing interest at a Treasury Rate shall be repaid in part as provided in Section 5 on each Payment Date (as defined in Section 5) occurring during its applicable Interest Period. The term "U.S. Treasury Rate" shall mean the yield to maturity on U.S. Treasury instruments having the same maturity as the last day of the Interest Period selected, as indicated by Telerate (page 5) at approximately 9:30 a.m., Eastern time, on the date the interest rate is fixed. If; however, no yield is available for the period selected, then the interest rate shall be interpolated based on the interest rates quoted for the next longest and shortest periods of time. In the event Telerate ceases to provide such quotations or materially changes the form or substance of page 5 (as determined by CoBank), then CoBank will notify the Borrower and the parties hereto will agree upon a substitute basis for obtaining such quotations.
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TREASURY RATE OPTION. As to any Portion or Portions of the Loan selected by the Borrower, interest shall accrue pursuant to this fixed rate option at a fixed annual interest rate (a "Treasury Rate") equal to the sum of the U.S. Treasury Rate (as hereinafter defined) plus a margin (the "Treasury Margin") equal to the percentage determined in accordance with Subsection (B) (subject to Subsection (C)). Under this option, the interest rate on any Portion of the Loan, in minimum amounts of $100,000, may be fixed for a period (any such period, and any period selected pursuant to Subsection (A)(2)(b), an "Interest Period") of one year or more but not beyond the Maturity Date (as defined in Section 5); provided, however, that such Interest Period may expire only on a Business Day; provided further, however, that in the written notice of the Funding Date given pursuant to Section 3, the Borrower may elect (i) to have a Portion of the Loan in the amount of $5,582,912.43 accrue interest at a fixed rate equal to 8.09% for an Interest Period commencing on the Funding Date and ending on February 17, 1998, and (ii) to have a Portion of the Loan in the amount of $1,924,676.00 accrue interest at a fixed rate equal to 8.73% for an Interest Period commencing on the Funding Date and ending on August 25, 1995 (for purposes of this Agreement, any rate selected pursuant to this clause shall be
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TREASURY RATE OPTION. During the Availability Period and so long as no Event of Default has occurred and is continuing, Borrower may request in a Borrowing Notice that all or any part of the outstanding principal balance under the Notes bear interest at the Treasury Rate (each, a "TREASURY RATE LOAN"). To effect this option, the Borrowing Notice containing such request must specify (a) the principal amount that is to bear interest at the Treasury Rate, which must be a minimum of $10,000,000.00 and in incremental multiples of $5,000,000.00 and (b) the period selected by Borrower during which the Treasury Rate is to be applied which may be any period equal to or longer than 1 year but must expire no later than the Maturity Date ("TREASURY RATE PERIOD"). In addition, during the Availability Period, Borrower may convert any Base Rate Loan to a Treasury Rate Loan by making a written request therefor ("TREASURY RATE REQUEST") to the Administrative Agent by facsimile, specifying (y) the principal amount that is to bear interest at the Treasury Rate, which must be a minimum of $10,000,000.00 and in incremental multiples of $5,000,000.00 and (z) the Treasury Rate Period selected by Borrower during which the Treasury Rate is to be applied. Borrower may not have more than 10 Treasury Rate Loans outstanding at any time. Each Borrower Notice or Treasury Rate Request which requests a Treasury Rate Loan shall be effective as of the Banking Day after it is received if received by the Administrative Agent no later than 11:30 A.M. (Central time) or as of the second Banking Day if received later than 11:30 A.M. (Central time). The Administrative Agent shall incur no liability in acting upon a request which it believed in good faith had been made by a properly authorized employee of Borrower. Following the expiration of the Treasury Rate Period for any Treasury Rate Loan, interest shall automatically accrue at the Base Rate unless Borrower requests and receives a Quoted Rate Loan pursuant to Subsection 3.1.3.
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TREASURY RATE OPTION. As to any Portion or Portions of the Loan selected by the Borrower, interest shall accrue pursuant to this fixed rate option at a fixed annual interest rate (a "Treasury Rate") equal to
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Related to TREASURY RATE OPTION

  • Base Rate Option A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate; or

  • Interest Rate Options The Borrower shall pay interest in respect of the outstanding unpaid principal amount of the Loans as selected by it from the Base Rate Option or LIBOR Rate Option set forth below applicable to the Loans, it being understood that, subject to the provisions of this Agreement, the Borrower may select different Interest Rate Options and different Interest Periods to apply simultaneously to the Loans comprising different Borrowing Tranches and may convert to or renew one or more Interest Rate Options with respect to all or any portion of the Loans comprising any Borrowing Tranche; provided that (i) there shall not be at any one time outstanding more than ten (10) Borrowing Tranches in the aggregate among all of the Loans and (ii) if an Event of Default or Potential Default exists and is continuing, the Borrower may not request, convert to, or renew the LIBOR Rate Option for any Loans and the Required Lenders may demand that all existing Borrowing Tranches bearing interest under the LIBOR Rate Option shall be converted immediately to the Base Rate Option, subject to the obligation of the Borrower to pay any indemnity under Section 5.9 [Indemnity] in connection with such conversion. If at any time the designated rate applicable to any Loan made by any Lender exceeds such Lender’s highest lawful rate, the rate of interest on such Lender’s Loan shall be limited to such Lender’s highest lawful rate.

  • Treasury Rate Notes If the Interest Rate Basis is the Treasury Rate, this Note shall be deemed a “Treasury Rate Note.” Unless otherwise specified on the face hereof, “Treasury Rate” means: (1) the rate from the auction held on the Interest Determination Date (the “Auction”) of direct obligations of the United States (“Treasury Bills”) having the Index Maturity specified on the face hereof under

  • Alternate Rate of Interest; Illegality (a) If prior to the commencement of any Interest Period for a Eurodollar Borrowing: (i) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or (ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period; then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or other electronic transmission as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (x) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (y) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. (b) If any Lender reasonably determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted after the Effective Date that it is unlawful, for such Lender or its applicable lending office to make or maintain any Eurodollar Borrowing, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligations of such Lender to make or continue any Eurodollar Borrowing or to convert ABR Borrowings to Eurodollar Borrowings shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the Borrower shall upon demand from such Lender (with a copy to the Administrative Agent), either convert all Eurodollar Borrowings of such Lender to ABR Borrowings, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Borrowings to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans (in which case the Borrower shall not be required to make payments pursuant to Section 2.13 in connection with such payment). Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to designate a different lending office if such designation will avoid the need for such notice and will not, in the determination of such Lender, otherwise be disadvantageous to it.

  • Alternate Rate of Interest If prior to the commencement of any Interest Period for a Eurodollar Borrowing: (a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period; then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing; provided that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.