Conversion from LIBOR Rate to Variable Rate Sample Clauses
The "Conversion from LIBOR Rate to Variable Rate" clause establishes the process by which a loan or financial instrument previously referencing the LIBOR interest rate will transition to a new variable interest rate benchmark. Typically, this clause outlines the trigger events for conversion, the method for selecting the replacement rate (such as SOFR or another widely accepted benchmark), and any necessary adjustments to maintain economic equivalence. Its core practical function is to ensure continuity and clarity in interest calculations following the discontinuation of LIBOR, thereby preventing disputes and uncertainty for both parties.
Conversion from LIBOR Rate to Variable Rate. In the event that the Bank shall at any time determine that the accrual of interest on the basis of the LIBOR Rate (i) is infeasible because the Bank is unable to determine the LIBOR Rate due to the unavailability of U.S. dollar deposits, contracts or certificates of deposit in an amount approximately equal to the amount of the relevant Advance and for a period of time approximately equal to relevant LIBOR Interest Period or (ii) is or has become unlawful or infeasible by reason of the Bank’s compliance with any new law, rule, regulation, guideline or order, or any new interpretation of any present law, rule, regulation, guideline or order, then the Bank shall give telephonic notice thereof (confirmed in writing) to the Borrower, in which event any Advance bearing interest at the LIBOR Rate shall be deemed to be a Variable Rate Advance and interest shall thereupon immediately accrue at the Variable Rate.