Common use of Financing component Clause in Contracts

Financing component. The financing component emulates the income and expenses that would arise from acquiring the Refereuce Iustrumeut, selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the Iudex Calculatiou Aφeut for the calculation and administration of the Factor Iudex is added (Iudex Fee which reduces the value of the index). If the acquisition costs and the Iudex Fee exceed the interest income based on the relevant Iuterest Rate on a particular day, the value of the Factor Iudex is reduced on such day.