Common use of Present Value Factor Clause in Contracts

Present Value Factor. the factor that discounts to present value the costs resulting to Lender from the difference in interest rates during the months remaining in the Yield Maintenance Period, using the Assumed Reinvestment Rate as the discount rate, with monthly compounding, expressed numerically as follows: n = the number of months remaining in the Yield Maintenance Period; provided, however, if a Prepayment occurs on a Payment Date, then the number of months remaining in the Yield Maintenance Period will be calculated beginning with the month in which such Prepayment occurs and if such Prepayment occurs on a Business Day other than a Payment Date, then the number of months remaining in the Yield Maintenance Period will be calculated beginning with the month immediately following the date of such Prepayment. ARR = Assumed Reinvestment Rate Alabama None