Certain Interest Calculations Clause Samples
The 'Certain Interest Calculations' clause defines how interest is to be calculated on specific amounts under the agreement. It typically outlines the applicable interest rate, the method of calculation (such as simple or compound interest), and the periods for which interest accrues, for example, on overdue payments or outstanding balances. This clause ensures both parties have a clear understanding of how interest will be applied, thereby reducing disputes and providing predictability regarding financial obligations.
Certain Interest Calculations. Unless provided otherwise, the computation of interest on any Certificate will be performed on the basis of the actual number of days elapsed during each Accrual Period. However, if interest on any Bond is calculated as if each year consisted of twelve 30-day months, and if the computation of any Required Class A Certificate Interest Distribution Amount on the basis of the actual number of days elapsed would result in an amount in excess of the interest due on the related Bonds for the applicable period, then the Required Class A Certificate Interest Distribution Amount will be reduced by the amount of such excess.
Certain Interest Calculations. The computation of interest on any Certificate when any Weekly Reset Rate Method or Monthly Reset Rate Method is in effect will be performed on the basis of a 365 or 366-day year for the actual number of days elapsed during each Accrual Period. The computation of interest on any Certificate when any Term Reset Rate Method is in effect will be performed on the basis of a 360-day year consisting of twelve (30) day months for each Accrual Period. However, if interest on any Bond is calculated as if each year consisted of twelve 30-day months, and if the computation of any Required Class A Certificate Interest Distribution Amount on the basis of the actual number of days elapsed would result in an amount in excess of the interest due on the related Bonds for the applicable period, then the Required Class A Certificate Interest Distribution Amount will be reduced by the amount of such excess.
Certain Interest Calculations. The computation of interest on any Certificate when any Weekly Reset Rate Method or Monthly Reset Rate Method is in effect will be performed on the basis of a 365 or 366-day year for the actual number of days elapsed during each Accrual Period. The computation of interest on any Certificate when any Term Reset Rate Method, Term Extended Rate or LIBOR Index Rate is in effect will be performed on the basis of a 360-day year consisting of twelve 30-day months for each Accrual Period. However, if interest on any Bond is calculated as if each year consisted of twelve 30-day months, and if the computation of any Required Class A Certificate Interest Distribution Amount on the basis of the actual number of days elapsed would result in an amount in excess of the interest due on the related Bonds for the applicable period, then the Required Class A Certificate Interest Distribution Amount will be reduced by the amount of such excess.