Automatic Conversion to ABR Borrowing Clause Samples
The "Automatic Conversion to ABR Borrowing" clause defines the process by which a loan or borrowing automatically switches to an Alternate Base Rate (ABR) under certain conditions, such as the unavailability of a benchmark interest rate like LIBOR. In practice, this means that if the original interest rate cannot be determined or used, the loan will instead accrue interest at a rate based on a specified base rate, often calculated using a bank's prime rate or another standard index. This mechanism ensures that the lender continues to receive interest and the borrower remains compliant with payment obligations, thereby addressing the risk of rate disruptions and maintaining the continuity of the loan agreement.
Automatic Conversion to ABR Borrowing. If an Interest Election Request with respect to a Eurodollar Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing, the Administrative Agent or the Required Lenders may require, by notice to Borrower, that (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
Automatic Conversion to ABR Borrowing. (i) If an Interest Election Request with respect to a Eurodollar Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing, Administrative Agent or the Required Lenders may require, by notice to Borrower, that (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
(ii) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Revolving Maturity Date.
Automatic Conversion to ABR Borrowing. If an Interest Election Request with respect to a Eurodollar Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
Automatic Conversion to ABR Borrowing. If an Interest Election Request with respect to a Eurocurrency Borrowing or EURIBOR Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period, (i) in the case of a Eurocurrency Term Borrowing denominated in dollars, such Borrowing shall be converted to an ABR Borrowing, (ii) in the case of any Eurocurrency Revolving Borrowing or any EURIBOR Revolving Borrowing, such Borrowing shall become due and payable on the last day of such Interest Period and (iii) in the case of any Eurocurrency Term Borrowing denominated in Sterling or any EURIBOR Term Borrowing, such Borrowing shall be continued as a Eurocurrency Borrowing or a EURIBOR Borrowing, respectively, with a one-month Interest Period. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing, the Administrative Agent or the Required Lenders may require, by notice to the Borrowers, that (i) no outstanding Term Borrowing denominated in dollars may be converted to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each Eurocurrency Term Borrowing denominated in dollars shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. The foregoing is without prejudice to the other rights and remedies available hereunder upon an Event of Default.