Bank Rate Clause Samples
The Bank Rate clause defines the reference interest rate set by a central bank, which is used as a benchmark for calculating interest payments or adjustments in a contract. In practice, this clause specifies that any interest calculations, such as late payment charges or variable interest rates, will be based on the prevailing rate published by the relevant central bank, such as the Bank of England or the Federal Reserve. By clearly identifying the applicable rate, the clause ensures transparency and consistency in financial calculations, reducing ambiguity and potential disputes over interest amounts.
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Bank Rate. Any Bond purchased by the Bank pursuant to this Agreement shall thereupon become a Bank Bond and shall bear interest at the Bank Rate for the period commencing from the date that the Bank shall have purchased such Bond and continuing until such Bond is paid in full or remarketed in accordance with the Indenture and Section 2.4(a) hereof or purchased by the Company in accordance with Section 2.4(b) hereof. The "Bank Rate" for any Bank Bond shall be a rate per annum equal to the Base Rate, unless and until the Company provides the Bank three Euro-Dollar Business Days' prior notice (i) that it elects to have such Bank Bonds bear interest at Applicable LIBOR, and (ii) of the Interest Period applicable thereto, in which case such Bank Bonds shall bear interest based at Applicable LIBOR for the Interest Period requested by the Company; provided that the Bank Rate shall be subject to adjustment as hereinafter specified in paragraph (b) or (c) below and subject to the limitations set forth in Sections 3.3, 3.4, 3.5 and 3.6; and provided, further, that at least three Euro-Dollar Business Days prior to the end of any Interest Period, if the Company has not requested a continuation of or change in such Interest Period, or fails to elect an Interest Period, the Bank Bonds, upon the expiration of the then current Interest Period, shall bear interest at the Base Rate until such time as the Company has provided proper notice of an election pursuant to this Section 3.1(a). Notwithstanding anything to the contrary contained elsewhere in this Agreement, if an Event of Termination shall have occurred and be continuing, the Company may not elect Applicable LIBOR as the Bank Rate. The Bond Insurer shall, pursuant to the Insurance Policy, guarantee the payment of interest on the Bank Bonds at the Bank Rate. All accrued interest on Bank Bonds shall be payable on each Interest Payment Date.
Bank Rate. In a coordinated initiative by the central banks, the Governing Council of the European Central Bank (“ECB”) left interest rates unchanged at 1.0% at its meeting on December 3, 2009. The ECB is expected to maintain its benchmark interest rate at the current level of 1.0%, until the first adjustments are anticipated for the third quarter of 2010. The major central banks of Western Europe will begin to shift their monetary policies in 2010. The ECB is forecasted to be the first major bank to raise interest rates and withdraw other forms of monetary stimulus. Employment: Although initial employment losses were subdued in the beginning of the recession, the European labour markets continued to weaken throughout the period. In December 2009, the unemployment rate reached 10.0% however, the rate of job losses is beginning to stabilize as business sentiment across Europe is becoming less negative. Activity in the manufacturing, services and retail sectors improved and offset further deterioration in the construction industry. Economists expect further cuts to employment levels in Europe at least until mid-2010. Workers in displaced jobs will have difficulty re-entering the labour force, especially in Europe and some emerging economies. Economists project the unemployment rate will reach 9.4% in 2009 and 10.5% in 2010.
Bank Rate. It is the rate of interest charged by a central bank to commercial banks on the advances and the loans it extends. Base rate: It is the rate of interest on which banks base their lending rates. Usually loans are given at a Basis Point: One-hundredth of 1% point normally used for indicating cost of finance. Bid Price: The highest price offered by a dealer to purchase a given security. Bid-ask Spread: The difference between a dealers’s bid and ask price. Blue Chips: Blue chips are unsurpassed in quality and have a long and stable record of earnings and
Bank Rate. The Trustee will request the principal London office of each of the reference banks to provide a quotation of its rate. If at least two such quotations are provided, the rate will be the arithmetic mean of the quotations. If on such date fewer than two quotations are provided as requested, the rate will be the arithmetic mean of the rates quoted by one or more major banks in New York City, selected by the Trustee after consultation with the Servicer, as of 11:00 A.M., New York City time, on such date for loans in U.S. Dollars to leading European banks for a period of one month in amounts approximately equal to the Certificate Principal Balance of the Class 2-A-5 Certificates then outstanding. If no such quotations can be obtained, the rate will be LIBOR for the prior Distribution Date, or, in the case of the first LIBOR Rate Adjustment Date, 2.40%; provided, however, if, under the priorities described above, LIBOR for a Distribution Date would be based on LIBOR for the previous Distribution Date for the third consecutive Distribution Date, the Trustee shall select an alternative comparable index (over which the Trustee has no control), used for determining one-month Eurodollar lending rates that is calculated and published (or otherwise made available) by an independent party. The establishment of LIBOR by the Trustee and the Trustee's subsequent calculation of the Pass-Through Rates applicable to the Variable Rate Certificates for the relevant Interest Accrual Period, in the absence of manifest error, will be final and binding.
Bank Rate. 1.2.1 The Architect is the person or entity, including the Architect’s officers, Directors, employees, and representatives, identified as such in the Agreement, and is an Architect or entity li- censed to practise in the Province of Ontario and is referred to throughout the Agreement as if singular in number and mas- culine in gender.
Bank Rate. Section 1 of the Reimbursement Agreement is hereby amended to delete the term "Bank Rate" and to substitute the following in lieu thereof: BANK RATE shall mean (a) from August 3, 1998 until the first day of September, 1998, a rate equal to 7.91% per annum; (b) from the first day of September, 1998 until January 31, 1999, an interest rate per annum equal to the sum of (i) the LIBOR Rate plus (ii) 225 basis points (rounded upwards, if necessary, to the nearest one-eighth percent (.125%)); and (c) from February 1, 1999 until the Maturity Date, an interest rate per annum equal to the sum of (i) the LIBOR Rate plus (ii) 275 basis points (rounded upwards, if necessary, to the nearest one-eighth percent (.125%)). The Bank Rate shall be adjusted on each LIBOR Determination Date to account for any changes in the LIBOR Rate, which adjustment shall be effective on the commencement of the next succeeding LIBOR Reference Period.