Fixed Rate Indebtedness Clause Samples
The Fixed Rate Indebtedness clause defines obligations or loans that carry a predetermined, unchanging interest rate for their duration. In practice, this means that the borrower will pay the same interest rate throughout the life of the debt, regardless of fluctuations in market rates or other economic factors. This clause is essential for providing predictability in repayment amounts, helping both parties manage financial planning and risk exposure related to interest rate volatility.
Fixed Rate Indebtedness. Section 5.9(d) of the Credit Agreement is hereby deleted and the following substituted therefore:
Fixed Rate Indebtedness. All Non-Recourse Debt of the Borrower, the General Partner and any Subsidiaries shall be Fixed Rate Indebtedness; provided, however, the Subsidiaries may incur Non-Recourse Debt that is Floating Rate Indebtedness in connection with the funding of construction costs at Development Projects, which such Floating Rate Indebtedness shall not exceed $150,000,000 outstanding at any time.
Fixed Rate Indebtedness. All Non-Recourse Debt of the Borrower, the General Partner and any Subsidiaries shall be Fixed Rate Indebtedness.
Fixed Rate Indebtedness. The Borrower shall not, and shall not permit any Subsidiary of the Borrower to, incur, assume or suffer to exist Indebtedness which is not both (x) Indebtedness other than Floating Rate Indebtedness and (y) Indebtedness with an original term to maturity in excess of five (5) years, in an aggregate outstanding principal amount in excess of 40% of Total Indebtedness at any time.