Common use of Alternative Rates Clause in Contracts

Alternative Rates. If the Agent gives a notice under Clause 13.2 (Market disturbance): (a) the Parent and the Banks may (through the Agent) agree that, if not already drawn, the Advances concerned shall not be borrowed or Bills should not be drawn; or (b) in the absence of such agreement: (i) the Term or Interest Period of the Advances concerned shall be one month; -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- (ii) in the case of Clause 13.2(c) (Market disturbance), the Advances shall be made in euros, in an amount equal to the Original Euro Amount of the Advance concerned; (iii) in the case of Bills where Clauses 13.2(b) and (c)(iii) apply, the relevant Bills shall not be accepted and the relevant Banks will instead make an Advance in Sterling in accordance with Clause 6.6 (Advances as an alternative); and (iv) during the Term or Interest Period of each Advance concerned (other than an Advance under (b)(iii) above unless Clause 13.2(a) or (c) (Market Disturbance) applies to that Advance) the rate of interest applicable to the participation of each Bank in such Advance shall be the Margin plus, if applicable, MLA Cost plus the rate per annum notified by the Bank concerned to the Agent before the last day of such Term or Interest Period to be that which expresses as a percentage rate per annum the cost to such Bank of funding its participation in such Advance from whatever sources it may reasonably select with a view to providing funding at the lowest reasonably practicable rate.