Optional Interest Rate. (a) Instead of the interest rates based on the LIBOR Rate as described in Section 1.4 below, the Borrower may elect to have any Advance bear interest at a rate based on the Bank's Prime Rate. Tax-Exempt Advances would bear interest at the Banks Prime Rate, and Taxable Advances would bear interest at the Banks Prime Rate. (b) The Prime Rate is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Banks costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of a change in the Bank's Prime Rate.
Appears in 1 contract
Sources: Credit Agreement
Optional Interest Rate. (a) Instead of the interest rates based on the LIBOR Rate as described in Section 1.4 below, the Borrower may elect to have any Advance bear interest at a rate based on the Bank's Prime Rate. Tax-Exempt Advances would bear interest at the Banks Bank’s Prime Rate, and Taxable Advances would bear interest at the Banks Bank’s Prime Rate.
(b) The Prime Rate is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Banks Bank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of a change in the Bank's Prime Rate.
Appears in 1 contract
Sources: Credit Agreement