Common use of Interest rate During Clause in Contracts

Interest rate During. each Interest Period, interest shall accrue on each Drawing at the rate determined by the Agent to be the aggregate of (a) the Margin (b) LIBOR and (c), if applicable, the Mandatory Cost determined at or about 11.00 a.m. (London time) on the second Business Day prior to the beginning of the Interest Period relating to that Drawing. PROVIDED ALWAYS that if one or more Charters should be cancelled and the Borrowers do not within thirty (30) days either (i) elect that the Maximum Facility Amount shall be reduced by the Relevant Reduction Amount (after taking into account any prepayment already made pursuant to Clause 2.4.5) in respect of such Vessel(s) against a discharge of the Security Documents relative to that Vessel and a release of the relevant Owner from its obligations hereunder or (ii) secure an alternative charter for the Vessel(s) in question which is on terms and with a charterer acceptable to the Banks in their discretion, then the Margin for that part of the Facility in an amount equal to the Relevant Reduction Amount for the Vessel(s) in question shall be increased to zero point six two five per centum (0.625%) per annum. The amount (if any) subject to the higher Margin under this Clause 6.3 shall reduce pro rata to any reductions in the Maximum Facility Amount from time to time.