Liborsofr Option Sample Clauses
The LIBORSOFR Option clause establishes the right for parties to select between using the London Interbank Offered Rate (LIBOR) or the Secured Overnight Financing Rate (SOFR) as the benchmark interest rate for a financial agreement. In practice, this clause outlines the conditions under which one rate may be chosen over the other, such as upon the discontinuation of LIBOR or at the election of a specified party, and may detail the process for transitioning between rates. Its core function is to provide flexibility and certainty in interest rate calculations, addressing the risk of benchmark rate changes and ensuring the contract remains operable if LIBOR becomes unavailable.
Liborsofr Option. (a) In lieu of having interest charged at the rate based upon the Base Rate, Borrower shall have the option (the “LIBORSOFR Option”) to have interest on all or a portion of the Revolving Loans be charged at a rate of interest based upon the LIBORSOFR Rate. Interest on LIBORSOFR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto, (ii) the occurrence of an Event of Default in consequence of which Lender has elected to accelerate the maturity of all or any portion of the Obligations, or (iii) the Termination Date. On the last day of each applicable Interest Period, unless Borrower properly has exercised the LIBORSOFR Option with respect thereto, the interest rate applicable to such LIBORSOFR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans. At any time that an Event of Default has occurred and is continuing, Borrower no longer shall have the option to request that Revolving Loans bear interest at a rate based upon the LIBORSOFR Rate and Lender shall have the right to convert the interest rate on all outstanding LIBORSOFR Rate Loans to the rate then applicable to Base Rate Loans hereunder.
(i) Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBORSOFR Option by notifying Lender prior to 2:00 p.m. Eastern Time at least three (3) SOFR Business Days prior to the commencement of the proposed Interest Period (the “LIBORSOFR Deadline”). Notice of Borrower’s election of the LIBORSOFR Option for a permitted portion of the Revolving Loans and an Interest Period pursuant to this Section shall be made by delivery to Lender of a Notice of Borrowing (in the case of a new Revolving Loan that is to be a LIBORSOFR Rate Loan) or LIBORSOFR Notice (in the case of a conversion to, or continuation of, a LIBORSOFR Rate Loan) executed by Administrative Borrower received by Lender in writing or via an Approved Electronic Communication before the LIBORSOFR Deadline, or by telephonic notice received by Lender before the LIBORSOFR Deadline (to be confirmed by delivery to Lender of a LIBORSOFR Notice received by Lender prior to 3:00 p.m. on the same day).
(ii) Each LIBORSOFR Notice and Notice of Borrowing with respect to a new Revolving Loan that is to be a LIBORSOFR Rate Loan shall be irrevocable and binding on Borrower. In connection with each LIBORSOFR Rate Loan, Borrower shall indemnify, defend, and...
Liborsofr Option