Actual/360 Clause Samples
The Actual/360 clause defines the method for calculating interest on a loan by using the actual number of days in the interest period and a 360-day year as the basis for the annual rate. In practice, this means that interest accrues daily based on the real number of days in each month, but the annual interest rate is divided by 360 instead of 365, resulting in slightly higher effective interest payments for the borrower. This clause is commonly used in commercial lending to standardize interest calculations and to provide lenders with a modest increase in interest income, thereby addressing the need for consistency and predictability in financial agreements.
POPULAR SAMPLE Copied 7 times
Actual/360. All amounts payable under this Section 3(h) shall be calculated on the basis of a year of 360 days and actual number of days elapsed.
Actual/360. Floating Rate Period Monthly, on the 25th day of each month, commencing End Dates:.............. on May 25, 2006 and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
Actual/360. If interest accrues based on an Actual/360 interest computation, the amount of Dollars (US $ ) shall be payable on the First Interest Only Payment Date and thereafter consecutive monthly installments of interest only shall be payable as follows:
Actual/360. Interest shall be calculated on the basis of a year of three hundred sixty (360) days and charged upon the actual number of days elapsed.
Actual/360. Throughout the term of the Loans, interest and fees will be calculated on the basis the actual number of days elapsed during the period for which interest and fees are being charged predicated on a year consisting of 360 days.
Actual/360. If interest accrues based on an Actual/360 interest computation, the amount of Two Hundred One Thousand Seven Hundred Eighty and 00/100 Dollars (US $201,780.00) shall be payable on the First Payment Date and thereafter consecutive monthly installments of interest only, shall be payable as follows:
Actual/360. All computations of fees shall be made on an Actual/360 Basis (which results in more fees being paid than if computed on a 30/360 Basis).