Daily Simple SOFR Option Clause Samples
The Daily Simple SOFR Option clause defines the use of the Secured Overnight Financing Rate (SOFR) calculated on a simple, non-compounded basis for determining interest payments in a financial contract. Under this clause, interest is typically calculated by applying the daily SOFR rate to the outstanding principal for each day in the interest period, then summing these amounts to determine the total interest due. This approach provides a transparent and straightforward method for calculating interest, reducing complexity and minimizing the risk of disputes over interest calculations.
Daily Simple SOFR Option. In the case of Daily Simple SOFR Loans denominated in Dollars, a fluctuating rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the Daily Simple SOFR plus the SOFR Adjustment plus the Applicable Rate, such interest rate to change automatically from time to time effective as of the effective date of each change in Daily Simple SOFR;
Daily Simple SOFR Option. A fluctuating rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the Daily Simple SOFR plus the SOFR Adjustment plus the Applicable Rate, such interest rate to change automatically from time to time effective as of the effective date of each change in Daily Simple SOFR; or
Daily Simple SOFR Option. In the case of Swing Loans, a fluctuating rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the Daily Simple SOFR plus the SOFR Adjustment plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Term SOFR Rate; or
Daily Simple SOFR Option. At a variable rate per annum equal at all times to 1.45% above Daily Simple SOFR (the “Daily Simple SOFR Option”). Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Company.
Daily Simple SOFR Option. In the case of Daily Simple SOFR Investments denominated in Dollars, a fluctuating rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to Daily Simple SOFR plus the SOFR Adjustment, such discount rate to change automatically from time to time effective as of the effective date of each change in the SOFR Rate; provided, that if the Daily Simple SOFR Option, determined as provided above, would be less than the Floor, then the Daily Simple SOFR Option shall be deemed to be the Floor; or[Reserved]; or