Common use of OFFSHORE RATE Clause in Contracts

OFFSHORE RATE. The election of the Offshore Rate shall be subject to the following terms and requirements: (a) Borrower may select interest periods for Offshore Rate loans which have durations of 1, 2, 3, 6, 9 or 12 months, provided that no such interest period may be selected which would extend beyond the maturity of the related facility or which would result in Borrower being unable to make a scheduled payment of principal required hereunder without prepayment of the related Portion (as defined below). Borrower may select either the Cayman Islands eurodollar market or the London Inter-bank eurodollar market as the market in which quotations of Offshore Rates are obtained, provided that Borrower shall give the Bank (i) not less than two business days' notice, by 11:00 a.m. on such date, of its request for any loan to be made on the basis of an interest rate quotation based upon the London Interbank eurodollar market, and (ii) notice for loans based upon the Cayman Islands eurodollar market not later than 11:00 a.m. on the relevant date. The last day of the interest period will be determined by Bank using the practices of the relevant offshore dollar inter-bank market. (b) Any principal amount bearing interest at an optional rate under this Agreement is referred to as a "PORTION". Each Offshore Rate Portion will be for an amount not less than $500,000.