Applicable Margin (LIBOR means the margin to be added to the LIBOR Rate to determine the rate of interest payable on the Floating Rate Notes from time to time. The Applicable Margin (LIBOR) shall be communicated in writing by Farmer Mac to National Rural in accordance with Section 2.02(d) hereof, in the form of Schedule II hereof, and calculated by Farmer Mac as follows: (i) Farmer Mac's Cost of Funds (expressed in relation to the LIBOR Rate), plus 0.75%, minus (ii) the LIBOR Rate. The Applicable Margin (LIBOR) for any Floating Rate Note shall be set forth in the applicable Pricing Agreement.
Examples of Applicable Margin (LIBOR in a sentence
National Rural shall be deemed to approve of such pricing so long as the Applicable Margin (LIBOR) or Applicable Margin (Treasury) shall not exceed the preliminary indication by more than 5 basis points (0.05%).
Farmer Mac shall provide National Rural with written notice of the final Applicable Margin (LIBOR) or Applicable Margin (Treasury) no later than the time of pricing of each advance.
If a rating agency upgrade results in a decrease in the ABR Applicable Margin, LIBOR Applicable Margin or Facility Fee Rate and if such upgrade is reversed and the affected Applicable Margin is restored within ninety (90) days thereafter, Borrower shall be required to pay an amount to the Lenders equal to the interest differential on the Advances and the differential on the Facility Fees during such period of upgrade.
The (i) initial LIBOR Rate and (ii) Applicable Margin (LIBOR) for the term of each Floating Rate Note shall be specified in the applicable Pricing Agreement.
Each Floating Rate Note shall bear interest, payable quarterly in arrears unless otherwise agreed by the parties hereto and set forth in the applicable Pricing Agreement, on the outstanding principal amount thereof (computed on the basis of a 360-day year and the actual number of days elapsed) from its date of issuance until final payment on the maturity date thereof or otherwise at a variable rate per annum equal to the LIBOR Rate for each Interest Period plus the Applicable Margin (LIBOR).