Interest Protection Clause Samples
The Interest Protection clause is designed to safeguard a party’s right to receive interest on amounts owed under an agreement. Typically, this clause specifies the rate at which interest accrues on late payments, the method of calculation, and the period for which interest is payable. By clearly outlining these terms, the clause ensures that parties are compensated for delayed payments and discourages late settlement, thereby promoting timely financial compliance and reducing disputes over interest obligations.
Interest Protection. (a) If due to either: (i) the introduction of or any change (including, without limitation, any change by way of imposition or increase of reserve requirements) in or in the interpretation by any Governmental Authority of any law or regulation (other than laws or regulations relating to taxes) after the date hereof or (ii) the compliance by any Lender or any Liquidity Provider with any directive or request from any central bank or other Governmental Authority (whether or not having the force of law) imposed after the date hereof, (1) there shall be an increase in the cost to such Lender or such Liquidity Provider of funding or maintaining any Loan which accrues Interest at the Adjusted LIBO Rate or the CP Rate hereunder or of extending a commitment in respect thereof, or (2) such Lender or such Liquidity Provider shall be required to make a payment calculated by reference to any Loan which accrues Interest at the Adjusted LIBO Rate or the CP Rate funded by it or Interest received by it, then the Borrower shall, from time to time, within thirty (30) days after demand by the related Managing Agent, pay such Managing Agent for the account of such Lender or such Liquidity Provider (as a third party beneficiary, in the case of any Affected Party other than one of the Lenders), that portion of such increased costs incurred, amounts not received or required payment made or to be made, which such Managing Agent reasonably determines is attributable to funding and maintaining, or extending a commitment to fund, any Loan which accrues Interest at the Adjusted LIBO Rate or the CP Rate hereunder or pursuant to any Liquidity Agreement or similar liquidity facility.
(b) Each Managing Agent will promptly notify the Borrower and the Program Agent of any event of which it has knowledge, occurring after the date hereof, which will entitle any Lender or related Liquidity Provider in its Lender Group to compensation pursuant to Section 2.11(a). Each Lender or Liquidity Provider will designate a different lending office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the judgment of such Lender or Liquidity Provider, be otherwise disadvantageous to it or inconsistent with its internal policies and procedures. In determining the amount of such compensation, such Lender may use any reasonable averaging and attribution methods. The applicable Lender or Liquidity Provider (or such party’s related Managing Agent) shall submit...
Interest Protection. If due to either: (a) the introduction of or any change (other than any change by way of imposition or increase of the reserve requirements included in the Euro-Rate Reserve Percentage) in or in the interpretation of any law or regulation or (b) the compliance by any Bank with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be an increase in the cost to such Bank of making, funding or maintaining any Loans hereunder accruing interest at the Euro-Rate, then the Borrower shall, from time to time, within five (5) Business Days after demand and delivery of a certificate (as described below) to the Borrower by such Bank (with a copy to the Agent), pay to such Bank, that portion of such increased costs incurred which such Bank determines is attributable to making, funding or maintaining such Loans hereunder. In determining such amount, such Bank may use any reasonable averaging and attribution methods. Such Bank shall submit to the Borrower and the Agent a certificate as to such increased costs incurred, amounts not received or receivable or required payment made or to be made, which certificate, setting forth the calculation thereof, shall be conclusive and binding for all purposes absent manifest error.