Common use of An Interest Period for Clause in Contracts

An Interest Period for. a Loan shall not extend beyond the Final Maturity Date. If an Interest Period for a Loan selected by a Borrower would, but for this clause 8.1.3, extend beyond the Final Maturity Date (such Interest Period, a “Broken Period”), then for that Broken Period the Base Rate shall be determined in accordance with the following formula: r = r1 + (t- t1) x (r2-r1) / (t2-t1) where: r = the Base Rate to be determined, r1 = the JIBAR or where it is not possible to determine JIBAR on any Reset Date, SAR-JIBAR-Reference Banks, in either case converted to a nominal annual compounded monthly in arrear rate, for the period closest to but less than that Broken Period plus, if this would result in r1 being equal to SAFEX Overnight Deposit Rate, 0,01%; r2 = JIBAR or where it is not possible to determine JIBAR on any Reset Date, SAR-JIBAR-Reference Banks, in either case converted to a nominal annual compounded monthly in arrear rate, for the period closest to but greater than that Broken Period; t1 = the number of days applicable to the period for which r1 is quoted on the first day of that Broken Period; t2 = the number of days applicable to the period for which r2 is quoted on the first day of that Broken Period; t = the number of days in that Broken Period.