Computing Interest and Fees; Conforming Changes Clause Samples
The "Computing Interest and Fees; Conforming Changes" clause defines how interest rates and fees are calculated under the agreement and allows for adjustments to these calculations if necessary. In practice, this clause specifies the formulas or benchmarks used to determine interest and fees, and provides a mechanism for updating these methods if external factors—such as changes in law or market conventions—require it. Its core function is to ensure that the calculation of financial obligations remains accurate and consistent, even if underlying standards or reference rates change, thereby preventing disputes and maintaining the agreement's effectiveness over time.
Computing Interest and Fees; Conforming Changes. (a) Interest and fees are computed on the basis of a year of 360 days for the actual number of days elapsed. If any payment is due on a day that is not a Business Day, the due date is extended to the next Business Day (and interest on that payment is payable at the applicable interest rate during that extension). Except as specifically provided in the next Section, all interest, fees, and other amounts due to Lender under the Loan Documents are earned in full on the date when due and are not subject to rebate or proration for any other reason.
(b) In connection with the use or administration of Term SOFR, Lender may make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. ▇▇▇▇▇▇ will promptly notify Loan Party Representative of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.
Computing Interest and Fees; Conforming Changes. (a) Interest and fees are computed on the basis of a year of 360 days for the actual number of days elapsed. If any payment is due on a day that is not a Business Day, the due date is extended to the next Business Day (and interest on that payment is payable at the applicable interest rate during that extension). Except as specifically provided in Section 3.7, all interest, fees, and other amounts due to Administrative Agent or any Lender under the Loan Documents are earned in full on the date when due and are not subject to rebate or proration for any other reason.
Computing Interest and Fees; Conforming Changes