Computational Conventions Clause Samples
The Computational Conventions clause defines the specific methods, standards, or assumptions to be used when performing calculations under the agreement. It typically outlines how dates are counted, how interest is accrued, or how rounding is handled in financial computations. For example, it may specify whether calculations are based on actual/360 or actual/365 day counts, or how to address non-business days. This clause ensures consistency and clarity in all numerical operations, reducing the risk of disputes arising from differing calculation methods.
Computational Conventions. All computations of interest under subsection (b) above and all computations of Interest, Fees and other amounts hereunder shall be made on the basis of a year of 360 days (or, in the case of amounts determined by reference to the Prime Rate, 365 or 366 days, as applicable) for the actual number of days (including the first but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit.