{"component": "clause", "props": {"groups": [{"size": 1, "samples": [{"hash": "bec3KVhmhGe", "uri": "/contracts/bec3KVhmhGe#adjustable-interest-rate", "label": "Loan and Security Agreement (Sigma Designs Inc)", "score": 18.0, "published": true}], "snippet": "The Interest Rate will be based on the Index and will be adjusted periodically as the Index changes. The Interest Rate is a variable or floating rate and shall be the sum of the Wall Street Journal Prime Rate (the \u201cIndex\u201d) and One-Quarter of One Percentage Point (0.25%) (the \u201cMargin\u201d), (The Index and Margin are collectively the Rate). The interest rate determined shall be adjusted from time to time on the effective date of any changes to the Index as stated by the Wall Street Journal. If at any time the index is no longer available, Bank, with notice to Borrower, will choose a new Index that is based on comparable information.", "snippet_links": [{"key": "the-interest-rate", "type": "clause", "offset": [0, 17]}, {"key": "based-on", "type": "clause", "offset": [26, 34]}, {"key": "floating-rate", "type": "definition", "offset": [136, 149]}, {"key": "sum-of", "type": "clause", "offset": [167, 173]}, {"key": "the-wall-street-journal-prime-rate", "type": "definition", "offset": [174, 208]}, {"key": "the-rate", "type": "definition", "offset": [326, 334]}, {"key": "from-time-to-time", "type": "clause", "offset": [384, 401]}, {"key": "date-of", "type": "clause", "offset": [419, 426]}, {"key": "changes-to-the", "type": "definition", "offset": [431, 445]}, {"key": "at-any-time", "type": "clause", "offset": [493, 504]}, {"key": "notice-to-borrower", "type": "clause", "offset": [550, 568]}, {"key": "new-index", "type": "definition", "offset": [584, 593]}], "hash": "6e6e4b1d53fb2b0c6fe09c424671ee3c", "id": 5}, {"size": 4, "samples": [{"hash": "bX9khGI1nCH", "uri": "/contracts/bX9khGI1nCH#adjustable-interest-rate", "label": "Multifamily Note", "score": 26.1704312115, "published": true}, {"hash": "3azmWwZkMSa", "uri": "/contracts/3azmWwZkMSa#adjustable-interest-rate", "label": "Multifamily Note", "score": 26.1704312115, "published": true}, {"hash": "28ef3vxAYih", "uri": "/contracts/28ef3vxAYih#adjustable-interest-rate", "label": "Multifamily Note", "score": 26.1704312115, "published": true}], "snippet": "Interest shall accrue at the Adjustable Rate.", "snippet_links": [{"key": "adjustable-rate", "type": "clause", "offset": [29, 44]}], "hash": "0048bed3db3c51b4551dcfa3ac358e3d", "id": 1}, {"size": 1, "samples": [{"hash": "eaYnizPtC8x", "uri": "/contracts/eaYnizPtC8x#adjustable-interest-rate", "label": "Domestic L/C Trade Finance Credit Facility Contract (Cogo Group, Inc.)", "score": 20.5496235455, "published": true}], "snippet": "calculated as a 20% increase in the same-category base interest rate promulgated by the People\u2019s Bank of China on the Actual Release Day. The loan interest rate will be adjusted by Party A every one month (adjustment cycle) from the value date of the loan.", "snippet_links": [{"key": "base-interest-rate", "type": "definition", "offset": [50, 68]}, {"key": "the-people", "type": "definition", "offset": [84, 94]}, {"key": "bank-of-china", "type": "definition", "offset": [97, 110]}, {"key": "loan-interest-rate", "type": "definition", "offset": [142, 160]}, {"key": "party-a", "type": "definition", "offset": [181, 188]}, {"key": "one-month", "type": "definition", "offset": [195, 204]}, {"key": "date-of", "type": "clause", "offset": [239, 246]}], "hash": "87afdf839235ec804a8340ec42da2426", "id": 7}, {"size": 1, "samples": [{"hash": "85BrkO0sE7w", "uri": "/contracts/85BrkO0sE7w#adjustable-interest-rate", "label": "Facility Agreement", "score": 19.7373675801, "published": true}], "snippet": "I-Base = % per annum as on the date of this Facility Agreement .", "snippet_links": [{"key": "per-annum", "type": "definition", "offset": [11, 20]}, {"key": "date-of-this", "type": "clause", "offset": [31, 43]}, {"key": "facility-agreement", "type": "definition", "offset": [44, 62]}], "hash": "952a2abe53c5003f95ed87e8faf62185", "id": 8}, {"size": 1, "samples": [{"hash": "7Rb876M3jda", "uri": "/contracts/7Rb876M3jda#adjustable-interest-rate", "label": "Domestic L/C Trade Finance Credit Facility Contract (Cogo Group, Inc.)", "score": 20.5496235455, "published": true}], "snippet": "calculated as a 20% increase in the same-category base interest rate promulgated by the People\u2019s Bank of China on the Actual Release Day. The loan interest rate will be adjusted by Party A every one month (adjustment cycle) from the value date of the loan. Upon expiration of an adjustment cycle, the interest rate will be re-adjusted to a 20% increase of the same-category base interest rate promulgated by the People\u2019s Bank of China on the Re-Adjustment Day. The re-adjustment day is the day in the current month corresponding to the value date of the loan. If there is no such a day corresponding to the value date in the current month , then the last day of the month will become the re-adjustment day. Within the term of the loan, if the People\u2019s Bank of China happens to adjust the base interest rate, Party A may adjust the loan interest rate as stipulated herein without Party B\u2019s consent.", "snippet_links": [{"key": "base-interest-rate", "type": "definition", "offset": [50, 68]}, {"key": "the-people", "type": "definition", "offset": [84, 94]}, {"key": "bank-of-china", "type": "definition", "offset": [97, 110]}, {"key": "loan-interest-rate", "type": "definition", "offset": [142, 160]}, {"key": "party-a", "type": "definition", "offset": [181, 188]}, {"key": "one-month", "type": "definition", "offset": [195, 204]}, {"key": "date-of", "type": "clause", "offset": [239, 246]}, {"key": "expiration-of", "type": "clause", "offset": [262, 275]}, {"key": "the-interest-rate", "type": "clause", "offset": [297, 314]}, {"key": "adjustment-day", "type": "definition", "offset": [445, 459]}, {"key": "the-day", "type": "definition", "offset": [486, 493]}, {"key": "current-month", "type": "definition", "offset": [501, 514]}, {"key": "a-day", "type": "definition", "offset": [580, 585]}, {"key": "day-of", "type": "clause", "offset": [655, 661]}, {"key": "term-of-the-loan", "type": "definition", "offset": [718, 734]}, {"key": "party-b", "type": "definition", "offset": [879, 886]}], "hash": "5abc46384032f8b5bcc63c125392b056", "id": 6}, {"size": 1, "samples": [{"hash": "3KSKGeX5ODC", "uri": "/contracts/3KSKGeX5ODC#adjustable-interest-rate", "label": "Loan Agreement", "score": 24.6030116359, "published": true}], "snippet": "(a) IHFL-FRR: % per annum (as on the date of execution of this Agreement)\n(b) Adjustable Rate of Interest: IHFL-FRR +/- ........................%p.a. =. %p.a.", "snippet_links": [{"key": "per-annum", "type": "definition", "offset": [16, 25]}, {"key": "execution-of-this-agreement", "type": "clause", "offset": [45, 72]}, {"key": "adjustable-rate-of-interest", "type": "definition", "offset": [78, 105]}], "hash": "bda0b70b95f940e408df92263d5050f5", "id": 4}, {"size": 1, "samples": [{"hash": "cEVnicMHqyh", "uri": "/contracts/cEVnicMHqyh#adjustable-interest-rate", "label": "Loan Agreement (Qilian International Holding Group LTD)", "score": 29.4449007529, "published": true}], "snippet": "The interest rate shall be composed of LPR and BPS published by the People's Bank of China (or its authorized unit). During the performance of the contract, LPR shall be determined according to the announcement of the People's Bank of China (or its authorized unit), and BPS shall remain unchanged at all times. The loan interest rate under this Contract is adjusted on an annual basis. The first interest rate adjustment day shall be the day corresponding to the next year of the loan issuing date. In the whole adjustment month, if there is no corresponding day corresponding to the loan issuing date, the last day of the month shall be the interest rate adjustment day. The applicable LPR shall be the LPR last published by the People's Bank of China (or its authorized unit) on the interest rate adjustment day.", "snippet_links": [{"key": "the-interest-rate", "type": "clause", "offset": [0, 17]}, {"key": "the-people", "type": "definition", "offset": [64, 74]}, {"key": "bank-of-china", "type": "definition", "offset": [77, 90]}, {"key": "authorized-unit", "type": "definition", "offset": [99, 114]}, {"key": "performance-of-the-contract", "type": "clause", "offset": [128, 155]}, {"key": "according-to", "type": "definition", "offset": [181, 193]}, {"key": "announcement-of-the", "type": "clause", "offset": [198, 217]}, {"key": "at-all-times", "type": "definition", "offset": [298, 310]}, {"key": "loan-interest-rate", "type": "definition", "offset": [316, 334]}, {"key": "under-this-contract", "type": "clause", "offset": [335, 354]}, {"key": "annual-basis", "type": "clause", "offset": [373, 385]}, {"key": "adjustment-day", "type": "definition", "offset": [411, 425]}, {"key": "the-day", "type": "definition", "offset": [435, 442]}, {"key": "issuing-date", "type": "definition", "offset": [486, 498]}, {"key": "adjustment-month", "type": "definition", "offset": [513, 529]}, {"key": "corresponding-day", "type": "clause", "offset": [546, 563]}, {"key": "day-of", "type": "clause", "offset": [613, 619]}, {"key": "the-applicable", "type": "clause", "offset": [673, 687]}], "hash": "c2cec08d2cd4997bb40c3d17826a0468", "id": 10}, {"size": 1, "samples": [{"hash": "59mbceszg4M", "uri": "/contracts/59mbceszg4M#adjustable-interest-rate", "label": "Loan Agreement", "score": 26.2936344969, "published": true}], "snippet": "(a) IMLR: % per annum (as on the date of execution of this Agreement)\n(b) Adjustable Rate of Interest: IMLR +/- ........................%p.a. = %p.a.", "snippet_links": [{"key": "per-annum", "type": "definition", "offset": [12, 21]}, {"key": "execution-of-this-agreement", "type": "clause", "offset": [41, 68]}, {"key": "adjustable-rate-of-interest", "type": "definition", "offset": [74, 101]}], "hash": "daa00f90c0d4ac51954e7c4b586ccc2f", "id": 3}, {"size": 1, "samples": [{"hash": "8UIoGPh2elW", "uri": "/contracts/8UIoGPh2elW#adjustable-interest-rate", "label": "Deed of Trust (Home Treasure Finders, Inc.)", "score": 22.7145790554, "published": true}], "snippet": "First and second year interest rate at 7% with 25 year amortization monthly payment at $5935.95 Third and forth year interest rate at 8% with 25 year amortization monthly payment at $6453.71 Fifth year interest rate at 9% with 25 year amortization monthly payment at $6958.35", "snippet_links": [{"key": "second-year", "type": "clause", "offset": [10, 21]}, {"key": "interest-rate", "type": "clause", "offset": [22, 35]}, {"key": "monthly-payment", "type": "definition", "offset": [68, 83]}, {"key": "fifth-year", "type": "definition", "offset": [191, 201]}], "hash": "c64fc8a87adad5a937d13d0f0f5e31f6", "id": 9}, {"size": 4, "samples": [{"hash": "6sqXIXE0ymt", "uri": "/contracts/6sqXIXE0ymt#adjustable-interest-rate", "label": "Credit Card Agreement", "score": 35.8916459069, "published": true}], "snippet": "This section explains how we calculate rates and interest charges applicable to your account. This VISA loan has a variable rate, which means that your APR may increase or decrease each billing cycle while you maintain your account with us.\n(A) The Index: The APR is subject to change each billing cycle based on an increase or decrease in the Prime Rate Index (hereafter, Prime). Prime is the highest Prime Rate Index published in The Wall Street Journal \"Money Rates\" section on the 13th day of each month. If the Wall Street Journal is not published on that day, then we will use the immediately preceding edition. If Prime is no longer available, we will choose a new index that is based upon comparable information. We will give you notice of this choice.\n(B) Calculation of Changes: We calculate your APR for Purchases, Balance Transfers, and Cash Advances by adding 6.74%, an amount which we call the Margin, to the Prime. Even if the Margin and Prime could be higher, the rate on any transaction type will not exceed 24.99% APR. Purchases, Balance Transfers, and Cash Advances made on your Account will be subject to an INTEREST CHARGE at a Daily Periodic Rate of 0.0390%, which corresponds to an ANNUAL PERCENTAGE RATE (APR) of 14.24%.", "snippet_links": [{"key": "interest-charges", "type": "clause", "offset": [49, 65]}, {"key": "to-your-account", "type": "clause", "offset": [77, 92]}, {"key": "variable-rate", "type": "definition", "offset": [115, 128]}, {"key": "increase-or-decrease", "type": "clause", "offset": [160, 180]}, {"key": "billing-cycle", "type": "definition", "offset": [186, 199]}, {"key": "your-account-with-us", "type": "clause", "offset": [219, 239]}, {"key": "subject-to-change", "type": "clause", "offset": [267, 284]}, {"key": "based-on", "type": "clause", "offset": [304, 312]}, {"key": "prime-rate-index", "type": "definition", "offset": [344, 360]}, {"key": "the-wall-street-journal", "type": "clause", "offset": [432, 455]}, {"key": "money-rates", "type": "definition", "offset": [457, 468]}, {"key": "day-of", "type": "clause", "offset": [490, 496]}, {"key": "new-index", "type": "definition", "offset": [668, 677]}, {"key": "notice-of", "type": "clause", "offset": [738, 747]}, {"key": "of-changes", "type": "clause", "offset": [777, 787]}, {"key": "apr-for-purchases", "type": "clause", "offset": [807, 824]}, {"key": "balance-transfers", "type": "definition", "offset": [826, 843]}, {"key": "cash-advances", "type": "definition", "offset": [849, 862]}, {"key": "the-rate", "type": "definition", "offset": [976, 984]}, {"key": "transaction-type", "type": "definition", "offset": [992, 1008]}, {"key": "an-interest", "type": "clause", "offset": [1125, 1136]}, {"key": "rate-of", "type": "clause", "offset": [1164, 1171]}, {"key": "annual-percentage-rate", "type": "clause", "offset": [1205, 1227]}], "hash": "77194768b7cc90c799fbad6f4a7add87", "id": 2}], "next_curs": "CmESW2oVc35sYXdpbnNpZGVyY29udHJhY3Rzcj0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiFhZGp1c3RhYmxlLWludGVyZXN0LXJhdGUjMDAwMDAwMGEMogECZW4YACAA", "clause": {"size": 19, "children": [["change-date", "Change Date"]], "parents": [["attached-schedules", "Attached Schedules"], ["interest-rate", "Interest Rate"], ["sharing-of-information", "Sharing of Information"], ["general-provisions", "GENERAL PROVISIONS"], ["interestrate-and-payment-terms", "Interestrate and Payment Terms"]], "title": "Adjustable Interest Rate", "id": "adjustable-interest-rate", "related": [["applicable-interest-rate", "Applicable Interest Rate", "Applicable Interest Rate"], ["variable-interest-rate", "VARIABLE INTEREST RATE", "VARIABLE INTEREST RATE"], ["fixed-interest-rate", "Fixed Interest Rate", "Fixed Interest Rate"], ["interest-rate", "Interest Rate", "Interest Rate"], ["applicable-interest-rates", "Applicable Interest Rates", "Applicable Interest Rates"]], "related_snippets": [], "updated": "2025-07-07T12:37:55+00:00", "also_ask": ["What negotiation levers exist to cap or limit rate adjustments?", "Which index or benchmark should be specified to ensure transparency and fairness?", "What are the most common pitfalls in drafting adjustment frequency and notice provisions?", "How do courts typically interpret ambiguous or silent adjustable rate clauses?", "How does this clause compare to fixed-rate provisions in terms of risk allocation?"], "drafting_tip": "Specify the adjustment mechanism, define reference rates, and set adjustment frequency to ensure transparency, prevent disputes, and facilitate accurate calculations.", "explanation": "An Adjustable Interest Rate clause defines how the interest rate on a loan or financial agreement can change over time based on specific benchmarks or market indices. Typically, this clause outlines the frequency of rate adjustments, the reference index used (such as LIBOR or the prime rate), and any caps or floors that limit how much the rate can change during each adjustment period. Its core practical function is to allow the interest rate to reflect current market conditions, which can benefit either the lender or borrower depending on rate movements, and to allocate the risk of interest rate fluctuations between the parties."}, "json": true, "cursor": ""}}