Substitute Interest Rate definition
Examples of Substitute Interest Rate in a sentence
Subject to Section 2.2.4(e), at any time that the Loan is a Base Rate Loan or a Substitute Rate Loan, Borrower shall maintain a Substitute Interest Rate Protection Agreement.
All the provisions of this Section 2.6 applicable to the Interest Rate Protection Agreement delivered on the Closing Date shall be applicable to the Substitute Interest Rate Protection Agreement, and in connection with the delivery of the Substitute Interest Rate Protection Agreement, Borrower shall enter into a replacement collateral assignment of such Substitute Interest Rate Protection Agreement, which collateral assignment shall be in the same form as the Assignment of Interest Rate Cap Agreement.
In connection with Borrower obtaining a new Substitute Interest Rate Protection Agreement (in lieu of modifying an existing Interest Rate Cap Agreement to serve as the Substitute Interest Rate Protection Agreement), but not prior to Borrower taking all the actions described in this clause (e), Borrower shall have the right to terminate any then-existing Interest Rate Cap Agreement.
The Default Interest rate shall be the interest rate which results from the addition of a penalty interest rate of three percent (3%) per annum to the Ordinary Interest Rate or the Substitute Interest Rate (as applicable), including the Applicable Margin, which is being applied to the Interest Period related to the relevant Facility on which the payment default takes place.
In order to return to the application of the Ordinary Interest, within three (3) Business Days prior to the expiry of the Interest Period then in force and effect in relation in question for which the Principal Substitute Interest Rate had been applied, the procedure for the determination of the Ordinary Interest Rate, in accordance with the provisions of Clause 7.1, shall be reinitiated.
The Subsidiary Substitute Interest Rate shall be notified by the Agent to the Borrower and to the Lenders on the same date on which it is determined.
Said Interest Period shall commence three (3) Business Days after the date of the notification by the Agent, and during such period the Substitute Interest Rate in force and effect up until that time shall be applicable thereto.
The Substitute Interest Rate shall be the annual rate which the Lender determines as the arithmetical mean (if necessary rounded upwards to the nearest one-sixteenth of one per cent (1/16 %)) of the interest rates at which the Lender was offered by 3 prime banks (such banks to be selected by the Lender) deposits in the Loan Currency for the relevant period as at 11:00 a.m. London time on the day which is two Banking Business Days prior to the first ▇▇▇ of the relevant Interest Period.
Any Interest Period during which the Principal Substitute Interest Rate is applied will have a duration equivalent to the time period required for the calculation of the Substitute EURIBOR.
From and after the date of any LIBOR Conversion, all references to “Interest Rate Protection Agreement” and “Replacement Interest Rate Protection Agreement” herein (other than in the definition of “Interest Rate Protection Agreement” and the definition of “Replacement Interest Rate Protection Agreement”) shall be deemed to refer or relate, as applicable, to a Substitute Interest Rate Protection Agreement.