03B Floating Rate Tranches Sample Clauses
The '03B Floating Rate Tranches' clause defines the terms and conditions under which certain tranches of a financial instrument will bear interest at a floating rate, rather than a fixed rate. This clause typically specifies the reference rate (such as LIBOR or SOFR), the margin or spread added to the reference rate, and the frequency of interest rate resets. For example, it may state that interest payments are recalculated quarterly based on the prevailing reference rate plus a set percentage. The core function of this clause is to allocate interest rate risk between parties and provide a mechanism for adjusting payments in response to market rate fluctuations, ensuring that the instrument remains aligned with current market conditions.
03B Floating Rate Tranches. In case of demand under Article 10.01 in respect of any Floating Rate Tranche, the Borrower shall pay to the Bank the amount demanded together with a sum equal to the present value of 0.15% (fifteen basis points) per annum calculated and accruing on the amount of principal due to be prepaid in the same manner as interest would have been calculated and would have accrued, if that amount had remained outstanding according to the original amortisation schedule of the Tranche, until the Interest Revision/Conversion Date, if any, or the Maturity Date. The value shall be calculated at a discount rate equal to the Redeployment Rate applied as of each relevant Payment Date.