Term Interest Rate Clause Samples
The Term Interest Rate clause defines the specific interest rate that will apply to a loan or financial obligation for the duration of its term. Typically, this clause outlines whether the rate is fixed or variable, how it is calculated, and the periods during which it applies. For example, it may specify that a loan will accrue interest at a fixed annual rate of 5% for five years, or that the rate will adjust periodically based on a benchmark index. The core function of this clause is to provide clarity and certainty regarding the cost of borrowing, helping both parties understand their financial obligations and manage risk over the life of the agreement.
Term Interest Rate. (i) Determination of Term Interest Rate. During each Term Interest Rate Period, the Bonds shall bear interest at the Term Interest Rate determined by the Remarketing Agent on a Business Day selected by the Remarketing Agent, but not more than 60 days prior to and not later than the effective date of such Term Interest Rate Period. The Term Interest Rate shall be the rate determined by the Remarketing Agent on such date, and communicated on such date to the Trustee, the Paying Agent and the Company, by written notice or by telephone promptly confirmed by telecopy or other writing, as being the lowest rate (based on an examination of Tax-Exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then prevailing market conditions) which would enable the Remarketing Agent to sell the Bonds on the effective date of such Term Interest Rate Period at a price (without regard to accrued interest) equal to 100% of the principal amount thereof, provided however, that if, for any reason, a Term Interest Rate for any Term Interest Rate Period shall not be determined or become effective, then (A) in the event the then-current Term Interest Rate Period is for one year or less, the Rate Period for the Bonds shall automatically convert to a Daily Interest Rate Period and (B) in the event the current Term Interest Rate Period is for more than one year, the Rate Period for the Bonds shall -18- Forsyth Series 1998A Trust Indenture automatically adjust to a Term Interest Rate Period of one year and one day; provided, however, that if the last day of any successive Term Interest Rate Period shall not be a day immediately preceding a Business Day, then such successive Term Interest Rate Period shall end on the first day immediately preceding the Business Day next succeeding such day or, if such Term Interest Rate Period would end after the day prior to the final maturity date of the Bonds, the next succeeding Rate Period shall be a Term Interest Rate Period ending on the day prior to the final maturity date of the Bonds; provided further that in the case of clause (B) above, if the Company delivers to the Trustee a Favorable Opinion of Bond Counsel prior to the end of the then-effective Term Interest Rate Period, the Rate Period for the Bonds will adjust to a Daily Interest Rate Period. If the Daily Interest Rate for the first day of a Daily Interest Rate Period described in clause (A) above is not determined as provided in Sect...
Term Interest Rate. The aggregate outstanding principal balance of the Term Loan shall bear interest at a fixed rate of interest of Nine Percent (9%) per annum. All interest on the Term Loan shall be calculated on the basis of a 360 day year for the actual number of days elapsed in each period.
Term Interest Rate. The term “Term Interest Rate” shall mean the variable per annum rate determined by adding 0.5% to the Prime Rate from time to time in effect and after an Event of Default or maturity (whether by lapse of time, acceleration or otherwise) until paid in full, the variable per annum rate determined by adding 3.5% to the Prime Rate from time to time in effect.
Term Interest Rate. The interest rate for each loan shall be determined by adding a spread to the pricing benchmark, where the pricing benchmark is the [SOFR term rate/▇▇▇▇▇ term rate/EURIBOR term rate/TORF term rate, etc.] for the term of [week/month/year] applicable on the [draw down date/effective date of this Agreement] (the first interest rate determination date), and the spread is [plus/minus] basis points (one basis point equals 0.01%). The spread shall remain unchanged during the loan term. For multiple draw downs, the interest rate for each draw down shall be calculated separately. After the first interest rate determination date, **regardless of whether the loan has been drawn down**, the loan interest rate shall be adjusted according to the following option (A/B/C), with interest calculated separately for each period:
A. Adjusted every (1/3/6/12) months. The interest rate determination date for the second and subsequent periods shall be the corresponding date after the completion of one period from the first interest rate determination date. On such date, the loan interest rate shall be adjusted based on the applicable pricing benchmark and spread. If there is no corresponding date in the adjustment month, the last day of the month shall be deemed the corresponding date.
B. The first day of each interest period (i.e., the day following the end of the previous interest period) shall be the interest rate determination date. On such date, the loan interest rate shall be adjusted based on the applicable pricing benchmark and spread.
C. No adjustment shall be made during the entire loan term. **The interest rate determination date shall be determined in accordance with the rules specified in Article 1.1 of Part II.
Term Interest Rate. The definition of "Term Interest Rate" is hereby amended and restated as follows:
Term Interest Rate. The Remarketing Agent will set a Term Interest Rate on a date not later than the Business Day before the beginning of any period determined by the Company prior to the effective date of the Term Interest Rate (a “Term Interest Rate Period”) in which interest on any of the Bonds will be payable at a Term Interest Rate. The last day of each such Term Interest Rate Period shall be determined by the Company in accordance with Section 3.02(b)(1). Each Term Interest Rate will be the minimum rate necessary (as determined by the Remarketing Agent with respect to any Term Interest Rate Period based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then-prevailing market conditions) for the Remarketing Agent to sell the Bonds for delivery on the effective date of the Term Interest Rate at their principal amount (without regard to accrued interest). The Remarketing Agent shall use its best efforts to cause the Bonds in a Term Interest Rate required to be remarketed on the date set for mandatory tender for such Bonds pursuant to “Mandatory Tender at Beginning of a New Term Interest Rate Period” or “Mandatory Tender Upon a Change in the Determination Method” under paragraph 7 in the form of the Bonds, to be remarketed (in such Determination Method or Methods) on the first date thereafter at which time all such Bonds can be sold at par, at a rate not exceeding the Maximum Rate; provided, that no failure to remarket for any reason shall excuse the Event of Default arising from failure to purchase all of the Bonds on any date set for mandatory tender.
Term Interest Rate. This Note shall have an initial term of one year, during which time interest on the Principal Amount will accrue from the date of this Note at an annual interest rate of 2.5