Rate Cap Sample Clauses
A Rate Cap clause sets a maximum limit on the interest rate or fee that can be charged under a contract. In practice, this means that even if market rates rise above the specified cap, the party responsible for payment will not be required to pay more than the capped rate. For example, in a loan agreement, the borrower is protected from excessive increases in interest costs. The core function of this clause is to provide financial predictability and protect parties from unexpected or unaffordable rate hikes.
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Rate Cap. Borrower shall enter into an interest rate cap in the notional amount of not less than $26,000,000.00 and a strike rate of not greater that two percent (2%) with a term that expires no earlier than the Maturity Date (the “Rate Cap”), and the Agent, on behalf of the Lenders, shall have received a first priority assignment of such rate cap in form and substance reasonably satisfactory to the Agent. Borrower shall execute any and all additional documentation reasonably requested by Agent in order to collaterally assign to the Agent all of Borrower’s right, title and interest in and to such interest rate cap as security for the Obligations hereunder.
Rate Cap. In order to avoid doubts, regardless of any other provisions contained herein, if at any time the interest rate indicated as payable in connection with this contract constitutes a violation of Italian usury law, the interest rate payable in connection with this contract will be capped to the maximum amount payable pursuant to Italian usury law.
Rate Cap. At all times from the date hereof until the applicable Maturity Date, Borrower shall maintain the Rate Cap.