Spread; Spread Multiplier; Index Maturity Clause Samples
The 'Spread; Spread Multiplier; Index Maturity' clause defines how interest rates or returns are calculated in relation to a financial index or benchmark. It specifies the additional percentage (spread) added to the index rate, any multiplier that adjusts the spread or index, and the maturity date of the index used for calculations. For example, a loan might use a spread of 2% over LIBOR, with a multiplier of 1.5, and reference a 3-month index maturity. This clause ensures transparency and precision in determining payment amounts, reducing ambiguity and potential disputes over how rates are set during the contract term.
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Spread; Spread Multiplier; Index Maturity. The “Spread” is the number of basis points (one one-hundredth of a percentage point) specified on the face hereof to be added to or subtracted from the related Interest Rate Basis or Interest Rate Bases applicable to this Note. The “Spread Multiplier” is the percentage specified on the face hereof of the related Interest Rate Basis or Interest Rate Bases applicable to this Note by which the Interest Rate Basis or Interest Rate Bases will be multiplied to determine the applicable interest rate. The “Index Maturity” is the period to maturity of the instrument or obligation with respect to which the related Interest Rate Basis or Interest Rate Bases will be calculated.
Spread; Spread Multiplier; Index Maturity. The “Spread” is the number of basis points (one one-hundredth of a percentage point) specified on the face hereof