Interest Selection Clause Samples
Interest Selection. An Authorized Representative shall give the Agent (i) at least three (3) LIBOR Business Days' irrevocable telephonic notice of selection of a LIBOR Loan for all or part of the Term Loan (representing the conversion of a Floating Rate Loan to a LIBOR Loan or of one LIBOR Loan to another LIBOR Loan) prior to 10:30 A.M., Charlotte, North Carolina time; and (iii) irrevocable telephonic notice of each Floating Rate Loan for all or part of the Term Loan (representing a conversion from a LIBOR Loan) prior to 10:30 A.M. Charlotte, North Carolina time on the day of the proposed change in interest rate. An Authorized Representative shall give the Agent written confirmation of each such telephone notice by telefacsimile transmission in the form of the Interest Rate Selection Notice, but failure to provide such confirmation shall not affect the validity of such telephonic notice. Notwithstanding the foregoing, no part of the Term Loan shall be a LIBOR Loan unless such LIBOR Loan shall be made in an amount at least equal to the lesser of $5,000,000 and 20% of the then outstanding principal balance of the Term Loan or, if greater, an integral multiple of $1,000,000.
Interest Selection. (a) Borrowers may select the Contract Rate by indicating such on an applicable Advance Request or by delivering a selection notice substantially in the form of Schedule 2.5(a) (the “Selection Notice”) to Lender at least three (3) Business Days prior to the end of the current Interest Period. If Borrowers elect for the Advances to bear interest at the LIBOR (a “LIBOR Loan”), then the Selection Notice must also select (i) the duration of the initial Interest Period for an Advance in the applicable Advance Request for that, and (ii) the duration of the next Interest Period for that Loan. If Borrowers select the Prime Rate then such Advance shall be considered a “Base Rate Loan.”
(b) If Borrowers fail to deliver a Selection Notice to Lender before the close of business, London time, at least two (2) Business Days prior to the last day of an Interest Period, the relevant Interest Period will be the same as that applicable in the preceding Interest Period.
(c) An Interest Period shall not extend beyond the Maturity Date.
(d) Each Interest Period shall start on the date of the Advance or (if already made) on the last day of its preceding Interest Period.
(e) If the LIBOR is not available at the close of business, London time, two (2) Business Days prior to the Advance or start of the Interest Period, then the Contract Rate for the Interest Period shall be the percentage rate per annum which is the sum of:
(i) the Applicable Margin that would otherwise apply; and
(ii) the rate per annum reflecting the approximate cost to Lender of funding that Advance from whatever source it may reasonably select.
(f) If the Contract Rate is calculated in accordance with paragraph (e) above and Lender or Borrowers so require, Lender and Borrowers shall enter into negotiations (for a period of not more than thirty (30) days) with a view to agreeing a substitute basis for determining the rate of interest.