LIBOR Rates Clause Samples
The LIBOR Rates clause defines how interest rates are determined for financial obligations by referencing the London Interbank Offered Rate (LIBOR) as the benchmark. In practice, this clause specifies which LIBOR rate (such as one-month or three-month) applies, how it is sourced (typically from a recognized financial publication), and what happens if LIBOR is unavailable or discontinued. Its core function is to provide a clear and objective method for calculating variable interest payments, thereby ensuring predictability and fairness in financial contracts.
LIBOR Rates. The rate of interest applicable to each LIBOR Loan for each LIBOR Interest Period relative thereto shall be the rate per annum determined to be the aggregate of LIBOR for such LIBOR Interest Period plus the Applicable Margin in effect for each LIBOR Loan on each day during that LIBOR Interest Period.
LIBOR Rates. Subject to the terms and conditions set forth herein, the Borrower may elect one of the following optional rates to be applicable to a particular dollar increment of amounts outstanding, or to be disbursed, under the Third Amended and Restated Revolving Promissory Note: (1) the One Month LIBOR Rate plus One and 80/100ths percent (1.8%); (2) the Three Month LIBOR Rate plus One and 80/100ths percent (1.8%); or (3) the Six Month LIBOR Rate plus One and 80/100ths percent (1.8%). Any principal amount bearing interest at an optional LIBOR rate is referred to as a “Portion.”