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The \u201cRBC Centura LIBOR Base Rate\u201d is the rate for deposits in United States Dollars for a period equal to thirty (30) days which appears on Telerate Page 3750 (or any generally recognized successor method or means of publication) as of 11:00 a.m., London time, two (2) London business days prior to the first calendar day of each month, rounded upward, if necessary, to the nearest 1/16th of one percent. If for any reason, such rate is not available, then \u201cRBC Centura LIBOR Base Rate\u201d shall mean the rate per annum which, in the opinion of Lender, United States Dollars in an amount substantially equivalent to the principal amount due under this Note are being offered to Lender for settlement in the London interbank market at 11:00 a.m., London time, two (2) London business days prior to the first calendar day of each month, as such rate is adjusted in accordance with Lender\u2019s standard practices for reserves and other requirements. \u2587\u2587\u2587\u2587\u2587\u2587\u2019s determination of such interest rate shall be conclusive, absent manifest error.", "size": 2, "samples": [{"hash": "hhjEnL96d4I", "uri": "/contracts/hhjEnL96d4I#pre-default-rate", "label": "Commercial Promissory Note", "score": 29.3408622742, "published": true}, {"hash": "5hxxpPDQi3K", "uri": "/contracts/5hxxpPDQi3K#pre-default-rate", "label": "Commercial Promissory Note (Salix Pharmaceuticals LTD)", 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{"title": "Pre-Default Rate", "parents": [["interest", "Interest"], ["the-commitments", "The Commitments"], ["miscellaneous", "Miscellaneous"], ["interest-other-amounts", "Interest Other Amounts"], ["the-notes", "The Notes"]], "size": 62, "children": [], "id": "pre-default-rate", "related": [["post-default-rate", "Post-Default Rate", "Post-Default Rate"], ["late-fee-default-rate", "Late Fee; Default Rate", "Late Fee; Default Rate"], ["default-rate", "Default Rate", "Default Rate"], ["post-default-interest", "Post-Default Interest", "Post-Default Interest"], ["interest-and-default-rate", "Interest and Default Rate", "Interest and Default Rate"]], "related_snippets": [], "updated": "2026-04-05T05:59:45+00:00", "also_ask": ["What factors should determine the appropriate pre-default interest rate in negotiations?", "Which drafting elements are essential to ensure the pre-default rate is enforceable?", "How do pre-default rate provisions compare across common law and civil law jurisdictions?", "What are the main risks if the pre-default rate is set too high or too low?", "How have courts interpreted ambiguous or punitive pre-default rate clauses?"], "drafting_tip": "Specify the pre-default interest rate, clarify its calculation method, and state its application period to ensure transparency, prevent disputes, and facilitate accurate enforcement.", "explanation": "The Pre-Default Rate clause defines the interest rate that applies to outstanding amounts before any default event occurs under an agreement. Typically, this rate is set for regular payments or obligations, and it is often lower than the rate that would apply after a default. By specifying the applicable interest rate prior to default, this clause ensures both parties understand the cost of borrowing or outstanding balances under normal circumstances, thereby promoting transparency and reducing disputes over payment calculations."}, "json": true, "cursor": ""}}