Base Rate Borrowings Clause Samples
The 'Base Rate Borrowings' clause defines the terms under which a borrower can obtain loans that accrue interest based on a base rate, typically linked to a bank's prime rate or another benchmark rate. This clause outlines how the base rate is determined, how interest is calculated on such borrowings, and any specific conditions or limitations that apply to these types of loans. For example, it may specify minimum borrowing amounts or frequency of interest rate adjustments. Its core practical function is to provide a clear framework for calculating interest on certain loans, ensuring both parties understand the cost of borrowing and reducing disputes over interest charges.
Base Rate Borrowings. The Loans comprising each Base Rate Borrowing shall bear interest at a rate per annum equal to the Adjusted Base Rate plus the Applicable Rate.
Base Rate Borrowings. The term “BASE RATE BORROWINGS” means those portions of the LOANS upon which interest accrues at the ADJUSTED BASE RATE.
Base Rate Borrowings. Each Base Rate Borrowing shall bear interest (computed on the basis of a 365/366-day year and actual days elapsed excluding the date of repayment) on the unpaid principal amount thereof from the date such Borrowing is advanced, continued or created through conversion until the last day of its Interest Period, conversion to a Eurodollar Borrowing or maturity (whether by acceleration or otherwise), at a rate per annum equal to the Base Rate from time to time in effect, payable on such last day of its Interest Period, date of conversion or at maturity (whether by acceleration or otherwise).
Base Rate Borrowings