Failure to Select an Interest Period Clause Samples
The 'Failure to Select an Interest Period' clause defines what happens if a borrower or party responsible for choosing an interest period for a loan or financial instrument does not make a timely selection. Typically, this clause will specify that, in the absence of a selection, a default interest period—such as a one-month term—will automatically apply until a new selection is made. This ensures that the loan continues to accrue interest without interruption and prevents disputes or delays that could arise from indecision or oversight, thereby maintaining the smooth operation of the agreement.
Failure to Select an Interest Period. If an Interest Election Request with respect to a Eurodollar Rate Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, the immediately following Interest Period shall be three months.
Failure to Select an Interest Period. If an Interest Election Request with respect to a SOFR Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, subject to the first proviso in the definition of “Interest Period”, the immediately following Interest Period shall be three months.