Common use of Floating Rate Clause in Contracts

Floating Rate. Each Segment subject to the Floating Rate shall bear interest from the date the Floating Rate becomes applicable thereto until payment in full, or until the LIBOR-Based Rate is selected by the Borrower and becomes applicable thereto, on the unpaid principal balance of such Segment on an Actual/360 Basis. Any change in the Floating Rate caused by a change in the Prime Rate or in the Federal Funds Effective Rate shall take effect on the effective date of such change in the Prime Rate designated by the Lender or in the Federal Funds Effective Rate, without notice to the Borrower and without any further action by the Lender. If an Event of Default exists, each Segment subject to the Floating Rate shall bear interest from the date of such Event of Default until payment in full at a per annum rate (computed on an Actual/360 Basis) equal to the Default Rate. Notwithstanding the foregoing, for the purpose of enabling the Lender to send periodic billing statements in advance of each interest payment date reflecting the amount of interest payable on such interest payment date, at the option of the Lender, the Prime Rate or the Federal Funds Effective Rate, as applicable, in effect 15 days prior to each interest payment date shall be deemed to be the Prime Rate or the Federal Funds Effective Rate, as applicable, as continuing in effect until the date prior to such interest payment date for purposes of computing the amount of interest payable on such interest payment date. If the Lender elects to use the Prime Rate or the Federal Funds Effective Rate, as applicable, 15 days prior to the interest payment date for billing purposes, and if the Prime Rate or the Federal Funds Effective Rate, as applicable, changes during such 15-day period, the difference between the amount of interest that in fact accrues during such period and the amount of interest actually paid will be added to or subtracted from, as the case may be, the interest otherwise payable in preparing the periodic billing statement for the next succeeding interest payment date. In determining the amount of interest payable at the Termination Date or upon full prepayment of the Obligations, all changes in the Prime Rate or the Federal Funds Effective Rate, as applicable, occurring on or prior to the day before the Termination Date or the date of such full prepayment shall be taken into account.