Adjusted Libor Based Rate Protections Clause Samples
The Adjusted LIBOR Based Rate Protections clause defines how interest rates are determined and adjusted when the standard LIBOR benchmark is unavailable or unreliable. In practice, this clause outlines the process for selecting an alternative reference rate, such as SOFR, and specifies any necessary adjustments to ensure the new rate is economically equivalent to the original LIBOR-based rate. Its core function is to provide continuity and certainty in loan agreements by ensuring that interest calculations remain fair and predictable even if LIBOR is discontinued or replaced.
Adjusted Libor Based Rate Protections a. Inability to Determine Rate. In the event that Bank shall have --------------------------- determined, which determination shall be final, conclusive and binding, that by reason of circumstances occurring after the date of this Note affecting the London interbank market, adequate and fair means do not exist for ascertaining the LIBOR on the basis provided for in this Note, Bank shall give notice (by telephone confirmed in writing or by telecopy) to Borrower of such
(i) no LIBOR Advance shall be made until Bank notifies Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any request by Borrower for a LIBOR Advance shall be deemed to be a request for a Standard Advance.
Adjusted Libor Based Rate Protections