Common use of Reference Rate Clause in Contracts

Reference Rate. The rate of interest publicly announced from time to time by Bank of America National Trust and Savings Association in San Francisco, California, as its reference rate. The Reference Rate is set by Bank of America National Trust and Savings Association based upon various factors, including Bank of America National Trust and Savings Association's costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. Bank of America National Trust and Savings Association may price loans at, above or below the Reference Rate. Any change in the Reference Rate shall take effect at the opening of business on the day specified in the public announcement of such change.