A LIBOR Advance Clause Samples
A LIBOR Advance clause defines the terms under which a loan or credit facility is provided to a borrower at an interest rate based on the London Interbank Offered Rate (LIBOR). This clause typically specifies how the LIBOR rate is determined, the applicable margin added to the rate, and the duration for which the rate is fixed for each advance. For example, it may outline the process for selecting interest periods and the notice requirements for drawing down funds. The core function of this clause is to establish a transparent and predictable method for calculating interest on borrowed amounts, thereby providing both parties with clarity and certainty regarding borrowing costs.
A LIBOR Advance. Notice of any LIBOR Advance shall be received by the Bank no later than two Business Days prior to the day (which shall be a Business Day) on which the Borrower requests such LIBOR Advance to be made.