Alternative Interest Rates Clause Samples
The "Alternative Interest Rates" clause defines how interest will be calculated if the primary reference rate becomes unavailable or is discontinued. Typically, this clause outlines a hierarchy of fallback rates or specifies a process for selecting a new benchmark, such as switching from LIBOR to another published rate. Its core function is to ensure continuity and certainty in interest calculations, thereby preventing disputes or confusion if the original rate can no longer be used.
Alternative Interest Rates. 9.01 If the Agent acting reasonably determines that as a result of circumstances applying in the London Interbank Market generally at 11.00 a.m. on the Quotation Date for an Interest Period the Screen Rate is not available and only one or none of the Reference Banks was offering deposits in Sterling to prime banks in the London Interbank Market for the proposed duration of such Interest Period or that otherwise LIBOR cannot be determined or if the Agent shall have received notice from a Bank or Banks whose participations in an Advance constitute at least one-third in aggregate of that Advance that LIBOR does not fully reflect their cost of funding their respective participations in the relevant Advance, then, notwithstanding the provisions of Clauses 7 and 8:
(i) the Agent shall notify the Borrower and the Banks of such event;
(ii) the duration of that Interest Period shall be one month;
(iii) if the Agent or the Borrower so requires within five business days of such notification, for the immediately following period of thirty business days the Agent, the Banks and the Borrower shall enter into negotiation in good faith with a view to agreeing a substitute basis (a) for determining the rates of interest from time to time applicable to Advances and/or (b) upon which such Advances may be made and maintained thereafter, in both cases on the basis that the net return to the Banks shall be the same as it would have been had such event not occurred. If a substitute basis is agreed it shall apply in accordance with the terms agreed retrospectively as appropriate to all Advances made or renewed since the Agent's notification referred to in Clause 9.01(i) and Advances may thereupon again be made on the substitute basis for so long as such circumstances shall prevail;
(iv) for so long as such circumstances prevail and provided that a substitute basis as specified in sub-Clause (iii) above has not been agreed the rate of interest applicable to Advances shall be the rate per annum which is the sum of the Applicable Margin, Mandatory Costs as determined by the Agent and in relation to each Bank's participation in Advances the rate rounded upwards (if necessary) to four decimal places notified by such Bank to the Agent as that which expresses as a percentage rate per annum the cost to such Bank of funding from whatever reasonable sources it may select an amount equal to its participation in such Advance for delivery on the first day of such Interest Period and for repay...
Alternative Interest Rates. If:
(a) in attempting to calculate LIBOR under paragraph (b) of the definition of LIBOR for a specified period the Facility Agent determines at 11.00 a.m. (London time) on the Quotation Date that it is unable to obtain quotations for LIBOR from any of the Reference Banks in respect of the relevant Advance or unpaid sum for the specified period; or
(b) before its close of business on such day, the Facility Agent has been notified in writing by a Bank or group of Banks to which 35% or more of the relevant Advance or unpaid sum is (or, if the relevant Advance were made, would then be) owed that LIBOR calculated in accordance with its definition in this Agreement does not accurately reflect the cost to them of funding their participation; or
(c) the Facility Agent, acting reasonably, determines that, by reason of circumstances affecting the London inter-bank market, adequate and fair means do not or will not exist for determining the rate of interest applicable to the specified period, then:
(i) the Facility Agent shall promptly notify in writing the Primary Borrower and the Banks of such event or circumstance;
(ii) the Facility Agent (on behalf of and after consultation with the Banks) shall, within three Banking Days of such notice, negotiate with the Primary Borrower with a view to agreeing a substitute basis on which the relevant part of the Facility may be maintained;
(iii) any substitute basis agreed in writing by the Facility Agent (on behalf of and with the consent of all the Banks) and the Primary Borrower within 30 days of such notice shall take effect in accordance with its terms and interest shall be calculated as if the substitute basis had come into effect from the beginning of the relevant specific period;
Alternative Interest Rates. 9.1 If, at or about 11.00 a.m. on the Quotation Date for an Interest Period, the Bank was not offering to prime banks in the London Interbank Market deposits in sterling for the proposed duration of such Interest Period, then, notwithstanding the provisions of Clauses 7 and 8:
(i) the duration of that Interest Period shall be one month or, if less, such that it shall end on the next succeeding Repayment Date; and
(ii) the rate of interest applicable to the Advance to which such Interest Period relates from time to time during such Interest Period shall be the rate per annum which is the sum of the Margin, the Associated Costs Rate in respect thereof at such time and the rate per annum determined by the Bank to be that which expresses as a percentage rate per annum the cost to it of funding such Advance during such Interest Period from whatever sources it may reasonably select.
9.2 If the interest rate applicable to an Advance during an Interest Period fails to be determined pursuant to Clause 9.1, then:
(i) the Bank shall notify the Guarantor of such event;
(ii) if the Bank so requires, within five days of such notification the Bank, the Guarantor and the relevant Borrower shall enter into negotiations with a view to agreeing a substitute basis (a) for determining the rates of interest from time to time applicable to the Advances and/or (b) upon which the Advances may be maintained (whether in sterling or some other currency) thereafter and any such substitute basis that is agreed shall take effect in accordance with its terms and be binding on such Borrower and the Bank; and
(iii) if the Bank has required the Guarantor and a Borrower to enter into such negotiations, the Bank may declare (any such declaration to be binding on the Borrowers) that each Advance shall become due and payable on the last day of its then current Interest Period unless by then a substitute basis has been agreed upon in relation thereto.
Alternative Interest Rates. 23 PART 4 REPAYMENT, CANCELLATION, ILLEGALITY AND PREPAYMENT.......................................................... 25
Alternative Interest Rates. 16 Part 4 REPAYMENT, CANCELLATION AND PREPAYMENT...............................17
Alternative Interest Rates. (a) Except as otherwise provided in this Agreement, if on any Rate-fixing Day on which the interest rate with respect to any Advance or Term Loan is to be based on the Eurodollar Rate, the Agent shall determine that it is unable to quote the Eurodollar Rate, or any Bank shall determine that such Bank is unable to or it is impracticable for it to fund the Advance or Term Loan for the requested Interest Period, the Borrower shall be deemed to have elected that the Advances or Term ▇▇▇▇▇ ▇▇ ▇▇▇ominated in Dollars as Base Rate Advances.
(b) If any Bank shall in good faith determine that, by reason of circumstances affecting the market for certificates of deposit maintained by New York dealers of recognized standing, adequate and reasonable means do not exist for such Bank to obtain bids for the purchase of certificates of deposit on the first day of an applicable Interest Period then (a) such Bank shall so notify the Agent and the Agent shall notify the Borrower and the Banks, and (b) any Advances or Term Loans which are the subject of such request by the Borrower shall be Base Rate Advances.
Alternative Interest Rates. 14 PART 5
Alternative Interest Rates. 11 11. REPAYMENT................................................................ 11 12. PREPAYMENT............................................................... 12 13.
Alternative Interest Rates. 14.1 Notification to the Principal Borrower of market disruption If, in relation to any Advance and any proposed Interest Period, the Bank determines (which determination shall be conclusive and binding on all parties hereto), that, by reason of circumstances affecting the London inter-bank market generally, adequate and fair means do not exist for ascertaining LIBOR applicable to such Advance for the relevant Interest Period, the Bank shall promptly give written notice of such determination to the Principal Borrower.
14.2 Consequence of market disruption If the Bank gives a notice under clause 14.1:
14.2.1 the Interest Period in respect of such Advance shall be 1 month;
14.2.2 the Bank and the Principal Borrower shall negotiate in good faith with a view to agreeing a substitute basis for determining the rate of interest applicable to such Advance; and
14.2.3 if such agreement is not reached within 14 days , then, during such Interest Period, the rate of interest applicable to such Advance shall be the rate per annum which is the aggregate sum of (a) the Applicable Margin and (b) the rate per annum determined by the Bank which fairly expresses the cost to the Bank of funding such Advance from whatever sources it may reasonably select (and which cost of funds may include a Mandatory Cost).
Alternative Interest Rates. If it becomes impossible for any Finance Party to determine any appropriate interest rate basis under the terms of any Finance Document (as varied or supplemented by this Agreement) then:-
(a) the relevant Finance Party shall promptly notify the Lead Bank and the Borrowers;
(b) the rate of interest applicable to the sum in respect of which interest is to be determined from time to time during any period applicable to it shall be the rate per annum which is the aggregate of (i) the Margin, (ii) the Additional Costs Rate (if any) and (iii) the rate per annum determined by the relevant Finance Party to be the cost to it of funding such sum during such period from whatever sources it may select.