Rate Commitment Clause Samples
A Rate Commitment clause establishes the obligation of one party, typically a lender or service provider, to offer a specified interest rate or pricing structure for a defined period. In practice, this means that the agreed-upon rate cannot be changed or withdrawn during the commitment window, even if market rates fluctuate. This clause provides certainty and protection to the other party by locking in costs and preventing unexpected rate increases, thereby facilitating reliable financial planning and reducing exposure to market volatility.
Rate Commitment. Seller may request a rate quotation and rate commitment in accordance with the Arc Correspondent Seller's Guide. If accepted, Seller will provide Arc with a Best Efforts or Mandatory Commitment, as applicable. In order to receive payment for a Loan based on a committed rate in accordance with this Section 2.3, Seller must deliver to Arc a Purchasable Loan File and Credit File, including any required fees, and any additional information concerning the Property and/or the applicant which Arc may deem necessary, prior to the Expiration Date. If Seller fails to timely deliver a closed Best Effort Loan or fulfill its obligations under a Mandatory Commitment, Arc may renegotiate the Purchase Price of the Loan including without limitation extension and suspense fees in accordance with the Arc Correspondent Seller's Guide. If the Seller fails to fulfill its obligations under a Best Efforts or Mandatory Commitment the Seller will be subject to a Pair Off Fee determined in accordance with the Arc Correspondent Seller's Guide.
Rate Commitment. Seller may request a rate quotation and rate commitment in accordance with the Arc Seller’s Guide. If accepted, Seller will provide Arc with a Best Efforts or Mandatory Commitment, as applicable. In order to receive payment for a Loan based on a committed rate in accordance with this Section 2.3, Seller must deliver to Arc a Purchasable Loan File and Credit File, including any required fees, and any additional information concerning the Property and/or the applicant which Arc may deem necessary, prior to the Expiration Date. If Seller fails to timely deliver a closed Best Effort Loan or