Interest Rate Protection Agreement. (a) Borrower, at its option may, at or prior to each Advance of the Loan, enter into one or more Interest Rate Protection Agreements which shall effectively cap the LIBOR Rate on the entire outstanding principal balance of the Loan until the Maturity Date at a rate less than or equal to four and one-half percent (4.5%) per annum, calculated on an annual basis. The obligations of Borrower under any Interest Rate Protection Agreements shall not be secured by or encumber any of the collateral securing Borrower’s obligations under the Loan Documents nor shall it be a recourse obligation of any Credit Party. Promptly upon obtaining any Interest Rate Protection Agreement, Borrower shall deliver the same to Agent.
Appears in 4 contracts
Samples: Loan Agreement, Loan Agreement (Empire State Building Associates L.L.C.), Loan Agreement (Empire State Realty Trust, Inc.)
