Adjustable Rate Provisions Clause Samples
An Adjustable Rate Provision defines how the interest rate on a loan or financial product may change over time based on a specified index or benchmark. Typically, this clause outlines the frequency of rate adjustments, the formula for calculating new rates, and any caps or limits on how much the rate can increase or decrease during each adjustment period. Its core practical function is to allocate the risk of interest rate fluctuations between the parties, ensuring that the lender can respond to market changes while the borrower is aware of potential payment variability.
Adjustable Rate Provisions. The provisions of this Part III shall apply during each Adjustable Rate Period with respect to the Series [Series Designation] Bonds. From and after each Adjustable Rate Conversion Date or Adjustable Rate Reset Date with respect to the Series [Series Designation] Bonds, the interest rate on the Series [Series Designation] Bonds shall be an Adjustable Rate as provided hereafter. Unless and until the Corporation elects and effects a conversion of the Series [Series Designation] Bonds from the Adjustable Rate Mode to another Mode, or a change in the duration of the Adjustable Rate Period with respect to the Series [Series Designation] Bonds, the Series [Series Designation] Bonds shall automatically continue in the Adjustable Rate Mode with Adjustable Rate Periods containing a constant number of Adjustable Rate Interest Payment Dates; provided that if the period of time between the applicable Adjustable Rate Reset Date with respect to the Series [Series Designation] Bonds and the maturity date of the Series [Series Designation] Bonds contains fewer Adjustable Rate Interest Payment Dates than the immediately preceding Adjustable Rate Period with respect to the Series [Series Designation] Bonds, the new Adjustable Rate Period with respect to the Series [Series Designation] Bonds shall end on the Maturity Date specified above. Upon conversion of the Series [Series Designation] Bonds to the Adjustable Rate Mode on an Adjustable Rate Conversion Date, or the setting of a new Adjustable Rate with respect to the Series [Series designation] Bonds on an Adjustable Rate Reset Date, the Adjustable Rate with respect to the Series [Series Designation] Bonds shall equal the lowest rate, which the Remarketing Agent, having due regard for prevailing financial market conditions, shall determine will permit the remarketing of the Series [Series Designation] Bonds on the Adjustable Rate Conversion Date or Adjustable Rate Reset Date with respect to the Series [Series Designation] Bonds, as appropriate, at par plus accrued interest, if any, which interest rate shall be established by the Remarketing Agent (and agreed to by the Corporation) no later than 12:00 noon, New York Time, on the fifteenth day prior to the Adjustable Rate Conversion Date or Adjustable Rate Reset Date with respect to the Series [Series Designation] Bonds, as appropriate; provided, however, that in no event shall the Adjustable Rate be more than the Maximum Rate. In the event no Adjustable Rate is determined b...
Adjustable Rate Provisions. From and after each Adjustable Rate Conversion Date or Adjustable Rate Reset Date, the interest rate on this Bond shall be an Adjustable Rate, determined as provided below and in the Indenture. When the Bonds are in the Adjustable Rate Mode, the Bonds will remain in such Mode for as long as the Company continues to deliver timely conversion notices specifying the duration of the next Adjustable Rate Period. The Remarketing Agent, on or prior to the commencement of each Adjustable Rate Period, shall determine the Adjustable Rate to be borne by the Bonds during such Adjustable Rate Period, which will be the lowest rate which, in its sole judgment having due regard for prevailing financial market conditions, will permit the Bonds to be sold at par on the first day of such Adjustable Rate Period. Notwithstanding the foregoing, the Adjustable Rate shall not be more than the Maximum Rate. In the event no Adjustable Rate is determined by the Remarketing Agent for an Adjustable Rate Period, then the Bonds shall bear interest as provided in the Indenture. During each Adjustable Rate Period, interest on this Bond shall be paid on each Adjustable Rate Interest Payment Date, and shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
Adjustable Rate Provisions. The Bonds shall bear interest at an Adjustable Rate from each adjustable Rate Conversion Date or each Adjustable Rate Reset Date, as appropriate, to the earlier of their redemption, maturity, the following Conversion Date, the following Adjustable Rate Reset Date or the following date on which the Bonds shall be subject to mandatory tender for purchase pursuant to Section 2.
Adjustable Rate Provisions. The Bonds shall bear interest at an Adjustable Rate from each Adjustable Rate Conversion Date or each Adjustable Rate Reset Date, as appropriate, to the earlier of their redemption or maturity, the following Conversion Date, the following Adjustable Rate Reset Date or the following date on which the Bonds shall be subject to mandatory tender for purchase pursuant to Section 2.04 hereof. Upon a conversion of the Bonds to the Adjustable Rate Mode, the duration of the initial Adjustable Rate Period shall be that period specified in the Company's conversion notice delivered pursuant to Section 2.02(f)(i) for the purpose of effecting such conversion. An Adjustable Rate Period shall be of at least one month in duration and shall end on the day preceding the first Business Day of a calendar month or, if such Adjustable Rate Period extends to the final maturity date of the Bonds, such final maturity date. The Bonds thereupon shall remain in the Adjustable Rate Mode for as long as the Company shall continue to deliver timely notices pursuant to Section 2.02(f)(i) specifying the
Adjustable Rate Provisions. From and after each Adjustable Rate Conversion Date or Adjustable Rate Reset Date, to the earlier of its maturity, redemption, the following Conversion Date, the following Adjustable Rate Reset Date or the following date on which the Bond shall be subject to mandatory tender, the interest rate on this Bond shall be an Adjustable Rate, determined as provided below and in the Indenture. When the Bonds are in the Adjustable Rate Mode, the Bonds will remain in such Mode for as long as the Company continues to deliver timely conversion notices specifying the duration of the next Adjustable Rate Period. The Remarketing Agent, on or prior to the During each Adjustable Rate Period, interest on this Bond shall be paid on each Adjustable Rate Interest Payment Date and shall be computed on the basis of a 360-day year consisting of twelve 30-day months.