COST INCREASE CLAUSE Sample Clauses
COST INCREASE CLAUSE. If due to any change in the existing laws applicable to the Agreement and/or the Loan Documents on the Closing Date, legal requirement or the interpretation, or application thereof, or the Bank’s compliance with any guideline, request or order (having force of law or not) by any central bank or similar local or foreign entity or any other Government Authority, as the case may be, issued after the Closing Date:
i. Any reserve, special deposit or similar requirement against assets held by, deposits with or other liabilities for the account of, disbursements, loans or other credits extended, or any other acquisition of funds, made by any office of the Bank that has not been included in the determination of the Interest Rate, is imposed, modified or deemed applicable; or,
ii. Any other condition directly linked to any advance payment made hereunder or the obtaining of funds for it is imposed on the Bank; the Bank’s funding rate increases and the result of any of the circumstances described above (ii.a) increases the Bank’s cost, in an amount that the Bank deems material to make or maintain the Loan; or (ii.b.) reduces any amount receivable hereunder set on the Closing Date; Then:
(a) The Bank shall notify the Borrower in writing of any of the events described above, detailing the amounts and/or additional charges generated as a result of the imposition described in clauses (i) and (ii) above, for the Parties to reach an agreement.
(b) In the event that thirty (30) calendar days have elapsed from the receipt of the aforementioned notice without the Borrower having replied to the Bank’s notice, the Bank may request the prepayment of the Loan balance within thirty (30) calendar days following the submission of such request, in which case no penalty or prepayment fee shall apply.
COST INCREASE CLAUSE. If, due to any change in the current regulations applicable to the Contract and/or to the Loan Documents on the Closing Date, legal requirement or interpretation or application thereof, or compliance by the Bank with any guideline, request or mandate (that has force of law or lacks such force) of any central bank or similar national or foreign entity or other Government Authority, as the case may be, issued after the Closing Date:
(i) It is imposed, modified or made applicable any reservation, special deposit or similar requirement charged to the assets maintained by, deposits or other liabilities on behalf of, disbursements, loans or other credits, or any other acquisition of funds made by any office of the Bank that was not included in the determination of the Interest Rate; or
(ii) It is imposed on the Bank any other condition directly related to any advance made under the Contract or obtaining funds for it; the funding rate of the Bank is increased and the result of any of the circumstances described above (ii.a) increases the cost of the Bank, by an amount that the Bank considers substantial to make or maintain the Loan; or (ii.b.) reduces any amount receivable because of this Contract, established on the Closing Date, in which case and subject to the provisions of item (c) below, the Borrower must immediately pay to the Bank, after receiving the respective written communication (which must contain a description of the request for compensation of the Bank) any additional amount necessary to compensate the cost increase. Then:
(a) The Bank will immediately notify the Borrower in writing about any fact of which it becomes aware that occurs after the Closing Date, and that gives right to the Bank to be compensated according to this Clause.
(b) If the Bank determines that a change in a legal requirement concerning its solvency or the interpretation or application of such requirement, or the compliance by the Bank with a requirement or mandate concerning the solvency (that has force of law or lacks it) made by any Government Authority, as the case may be, after the Closing Date, has or will have as effect the reduction of the profitability rate of the capital of the Bank to a level below that which the Bank may have reached if it were not for said change or compliance (considering for this purpose the internal policies of the Bank), the Bank may communicate in writing to the Borrower to comply with paying and to pay the additional amount or amounts necessa...