Effective Discount Rate Determination Clause Samples
The Effective Discount Rate Determination clause defines how the applicable discount rate is established for financial calculations within an agreement. Typically, this clause outlines the method for selecting the rate, such as referencing a specific benchmark (like LIBOR or a central bank rate) plus a margin, and may specify the timing or frequency of rate adjustments. Its core practical function is to ensure both parties have a clear, agreed-upon basis for discounting future cash flows or obligations, thereby reducing ambiguity and potential disputes over financial calculations.
Effective Discount Rate Determination. Promptly upon request of McKesson Canada, the Canadian Administrative Agent shall provide McKesson Canada an indicative Effective Discount Rate, which rate shall not be binding on the Canadian Administrative Agent, the Administrative Agent or the Lenders for purposes of any Drawing or acceptance of Drafts.
Effective Discount Rate Determination. Canadian Agent shall give prompt notice to Libbey Canada of the Effective Discount Rate determined by Canadian Agent for an applicable Drawing Date.
Effective Discount Rate Determination. The Canadian Administrative Agent shall give prompt notice to the Company and Medis of the Effective Discount Rate and the Drawing Fee Rate determined by the Canadian Administrative Agent for an applicable Drawing Date. Promptly upon request of either Borrower, the Canadian Administrative Agent shall provide such Borrower an indicative Effective Discount Rate, which rate shall not be binding on the Canadian Administrative Agent, the Agent or the Banks for purposes of any Drawing or acceptance of Drafts.