Common use of Switch to Compounded Reference Rate Clause in Contracts

Switch to Compounded Reference Rate. On and from the Rate Switch Date: a) use of the Compounded Reference Rate will replace the use of LIBOR for the calculation of interest for the Loan and any Unpaid Sum; and b) the Loan or Unpaid Sum shall be a “Compounded Rate Loan” and Clause 8B (Interest – Compounded Rate Loan), Clause 8C (Interest Periods - Compounded Rate Loan) and Clause 8D (Changes to interest rates - Compounded Rate Loan) shall apply to the Loan or Unpaid Sum and Clause 8 (Interest), Clause 9 (Interest Periods) and Clause 10 (Changes to calculation of interest rates) shall cease to apply to the Loan. Clause 8 (Interest), Clause 9 (Interest Periods) and Clause 10 (Changes to calculation of interest rates) shall continue to apply to the Loan until the Rate Switch Date.