Common use of Reduction in Rate of Return Clause in Contracts

Reduction in Rate of Return. If at any time the Lender determines, acting reasonably, that (i) any change in any Applicable Law or any interpretation thereof after the date of execution hereof, or (ii) compliance by the Lender with any direction, requirement or request from any regulatory authority given after the date of execution hereof, whether or not having the force of law, has or would have, as a consequence of the Lender’s obligations under this Agreement and taking into consideration the Lender’s policies with respect to capital adequacy, the effect of reducing the rate of return on the Lender’s capital to a level below that which the Lender could have achieved but for such change or compliance, then from time to time, upon written demand by the Lender and after the expiry of 30 days from the date of such demand, the Borrower shall pay to the Lender such additional amounts as will compensate the Lender for such reduction after the expiry of such 30 day period; provided that should the Lender make such demand, the Borrower shall be entitled to prepay the Outstanding Obligations without notice or penalty (other than breakage costs and related expenses) during such 30 day period.