Interest Rate Fluctuations Clause Samples
The Interest Rate Fluctuations clause defines how changes in prevailing interest rates will affect the obligations or payments under the agreement. Typically, this clause outlines whether payments are fixed or variable, and if variable, how adjustments are calculated based on a reference rate such as LIBOR or the prime rate. Its core practical function is to allocate the risk of interest rate changes between the parties, ensuring that both sides understand how their financial responsibilities may shift over time.
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Interest Rate Fluctuations. Purchaser acknowledges that interest rates may increase or decrease between the date of this Agreement and the date the Purchaser’s lender commits to an interest rate on Purchaser’s loan. Fluctuations in the interest rate for Purchaser’s loan and the terms and conditions of the loan are solely between the Purchaser and the Purchaser’s lender and Purchaser assumes the risk of rate fluctuations. In no way shall interest rate fluctuations or changes in the terms of Purchaser’s loan relieve Purchaser of any obligation with respect to this Agreement.
Interest Rate Fluctuations. 2.2.4.1 The Owner will assume 100% of the impact of any Benchmark Interest Rate Fluctuation.
2.2.4.2 The Parties will share the risk of any Credit Spread Fluctuation, with the Owner assuming 75% of the impact of the Credit Spread Fluctuation, and Developer assuming 25% of the impact of the Credit Spread Fluctuation.
2.2.4.3 Upon the occurrence of any Benchmark Interest Rate Fluctuation or Credit Spread Fluctuation, as applicable, the Parties shall follow the protocol set forth in Appendix 2-C of the Agreement.
Interest Rate Fluctuations. If as a result of fluctuations in exchange rates or otherwise the Foreign LC Obligations exceed the Foreign Letter of Credit Sublimit, Foreign Borrowers shall Cash Collateralize the Foreign Letters of Credit to the extent necessary to eliminate such excess amount within three Business Days following demand by Agent.
Interest Rate Fluctuations. The prices of the Investment may be sensitive to interest rate fluctuations. Unexpected fluctuations in interest rates could cause the corresponding prices of the Token's long and short positions to move in directions which were not initially anticipated.
Interest Rate Fluctuations could reduce our ability to generate income and may cause losses. Liability relating to environmental matters may adversely impact the value of properties securing our loans. Defaults on our loans may cause declines in revenues and net income. The impact of defaults may be exacerbated by the fact that we do not carry loan loss reserves. Our revenues and the value of our portfolio may be negatively affected by casualty events occurring on properties securing our loans. Borrower concentration could lead to significant losses, which could have a material adverse impact on our operating results and financial condition. As we have substantial indebtedness, there could be increased risk in investing in our company and we have no formal corporate policy and none of our governance documents limit our ability to borrow money. Our indebtedness could adversely affect our financial flexibility and our competitive position. Our existing credit line has numerous covenants. If we are unable to comply with these covenants, the outstanding amount of the loan could become due and payable.
Interest Rate Fluctuations. If as a result of fluctuations in exchange rates or otherwise the sum of the U.S. LC Obligations and the Canadian LC Obligations exceeds the Letter of Credit Sublimit, the Borrowers shall Cash Collateralize the Letters of Credit to the extent necessary to eliminate such excess amount within one Business Day following demand by Agent.