Common use of Optional Interest Rate Clause in Contracts

Optional Interest Rate. Instead of an interest rate based on the Reference Rate, the Borrowers may elect to have all or portions of their outstanding advances and loans (herein called a "LIBOR Rate Portion") bear interest based on the "LIBOR Rate" (described below), plus the addition of a spread, as described more particularly in Paragraphs 2.4(a), 3.4(a) and 4.4(a). Designation of a LIBOR Rate Portion is subject to the following requirements: (a) The interest period during which the LIBOR Rate will be in effect will be one, two, three or six months. The first day of the interest period must be a day other than a Saturday or a Sunday on which BofA is open for business in California, New York and London and dealing in offshore dollars (a "LIBOR Banking Day"). The last day of the interest period and the actual number of days during the interest period will be determined by the Bank using the practices of the London interbank market. No interest period may extend beyond the Termination Date, however. (b) Each LIBOR Rate Portion will be for an amount not less than $500,000, and no more than four (4) LIBOR Rate Portions, in total, per each Facility, may be outstanding at any one time.