Common use of Interest Adjustment Clause in Contracts

Interest Adjustment. Where a Maturity Date is not a Business Day and the due date for repayment of the Advance is adjusted to the following Business Day, an interest adjustment is also payable at the discretion of the Corporation on the payment date specified in the notice provided by the Corporation to the Borrower setting out details of the Interest Adjustment, which will be calculated as follows: Interest Adjustment Amount = (P+I) x R x D 36500 where: P = the principal amount of the Advance; I = the interest amount due on the stated Maturity Date of the Advance; R = the Corporation's overnight lending rate applicable on the Business Day prior to the stated Maturity Date of the Advance expressed as a percentage per annum to two decimal places; and D = the number of calendar days from and including the stated Maturity Date to, but not including, the Business Day after the stated Maturity Date.