Eurocurrency Reserves Clause Samples
The Eurocurrency Reserves clause defines how a lender accounts for the costs associated with maintaining required reserves on Eurocurrency deposits. In practice, this clause allows the lender to pass on any additional costs incurred due to reserve requirements imposed by regulatory authorities, typically by adjusting the interest rate or charging a separate fee to the borrower. Its core function is to ensure that the lender is compensated for regulatory costs related to Eurocurrency funding, thereby protecting the lender from financial loss due to changes in reserve requirements.
Eurocurrency Reserves. If, after the date hereof, any Lender shall be required under any Reserve Requirement to maintain reserves, then (i) such Lender (through Administrative Agent) shall, within sixty (60) days after the end of any Interest Period with respect to any Eurodollar Borrowing during which Lender was so required to maintain reserves, deliver to Borrower a certificate stating (A) that such Lender was required to maintain reserves and as a result such Lender incurred additional costs in connection with making Eurodollar Borrowings and (B) in reasonable detail, such Lender’s computations of the amount of additional interest payable by Borrower, pursuant to the provisions below, and (ii) Borrower shall, promptly upon receipt of any such certificate, pay to Administrative Agent, for the account to such Lender, additional interest on the unpaid principal amount of each Eurodollar Borrowing of such Lender made to it outstanding during the Interest Period with respect to which the above-referenced certificate was delivered to Administrative Agent, at a rate per annum equal to the difference obtained by subtracting (x) the Eurodollar Rate for such Interest Period from (y) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus the Reserve Requirement of such Lender for such Interest Period. The amount of interest payable by Borrower to any Lender as stated in any certificate delivered to Administrative Agent pursuant to the provisions of this Section 3.15(a) shall be conclusive and binding for all purposes, absent manifest error. The provisions of this Section 3.15(a) shall survive the termination of this Agreement.
Eurocurrency Reserves. If the Bank or any other Lender shall be required to maintain reserves (including, without limitation, basic, supplemental, marginal and emergency reserves) under any regulations of the Board of Governors of the Federal Reserve System or other United States federal governmental authority having jurisdiction with respect thereto, as now or from time to time hereafter in effect, dealing with reserves for eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of such Board), the Bank or such Lender, as the case may be, may require the Company, by notice to the Company at least five days prior to an Interest Payment Date, to pay additional interest on the related LIBOR Rate Loan at a rate equal to the excess of (i)(A) the LIBOR Rate applicable to such LIBOR Rate Loan divided by (B) one minus the rate (expressed as a percentage adjusted to the nearest 1/100 of one percent) at which such reserves were so required to be maintained during the related Interest Period, over (ii) the LIBOR Rate applicable to such LIBOR Rate Loan.
Eurocurrency Reserves. The Borrowers jointly and severally shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency Liabilities”), additional interest on the unpaid principal amount of each Eurocurrency Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan, provided KCMH shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice 10 days prior to the relevant interest payment date, such additional interest shall be due and payable 10 days from receipt of such notice.
Eurocurrency Reserves. The Borrower shall pay to each Lender additional interest on the unpaid principal amount of each Eurocurrency Loan of such Lender, from the date of such Loan until such principal amount is paid in full, at an interest rate per annum equal at all times to the remainder obtained by subtracting (i) the Eurocurrency Rate for each Interest Period for such Loan from (ii) the rate obtained by dividing such Eurocurrency Rate by a percentage equal to 100% minus the Eurocurrency Rate Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such Loan. Such additional interest shall be determined by such Lender and notified to the Borrower through the Administrative Agent.
Eurocurrency Reserves. If, after the date hereof, any Lender shall be required under any Reserve Requirement to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, then (i) such Lender (through Administrative Agent) shall, within sixty (60) days after the end of any Interest Period with respect to any Eurodollar Borrowing during which Lender was so required to maintain reserves, deliver to Borrower a certificate stating (A) that such Lender was required to maintain reserves and as a result such Lender incurred additional costs in connection with making Eurodollar Borrowings and (B) in reasonable detail, such Lender's computations of the amount of additional interest payable by Borrower, pursuant to the provisions below, and (ii) Borrower shall, promptly upon receipt of any such certificate, pay to Administrative Agent, for the account to such Lender, additional interest on the unpaid principal amount of each Eurodollar Borrowing of such Lender made to it outstanding during the Interest Period with respect to which the above-referenced certificate was delivered to Administrative Agent, at a rate per annum equal to the difference obtained by subtracting (x) the Eurodollar Rate for such Interest Period from (y) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus the Reserve Requirement of such Lender for such Interest Period. The amount of interest payable by Borrower to any Lender as stated in any certificate delivered to Administrative Agent pursuant to the provisions of this SECTION 3.15(a) shall be conclusive and binding for all purposes, absent manifest error. The provisions of this SECTION 3.15(a) shall survive the termination of this Agreement.
Eurocurrency Reserves. For so long as the Lessor shall be required pursuant to the requirements of the F.R.S. Board to maintain reserves with respect to liabilities or assets consisting of or including “Eurocurrency liabilities” (or any other category of liabilities which includes deposits by reference to which the rate on LIBOR Equity Investment is determined or any category of extensions of credit or other assets which includes loans by a non-United States office of the Lessor to United States residents), then the Lessor may (provided, that any such determination by Lessor hereunder is made in good faith on a basis that is neither arbitrary nor capricious and shall be conclusive and binding on Lessee absent manifest error), during any Interim Term, require the Lessee to authorize and request Advances to fund and, during any Base Term, pay contemporaneously with each payment of Yield on such Equity Investment, on a pro rata basis, additional yield on the related Equity Investment of the Lessor at a rate per annum determined by the Lessor up to but not exceeding the excess of (a)(i) the applicable Interim LIBOR Rate or LIBOR Rate divided by (ii) one minus the LIBOR Reserve Percentage over (b) the applicable Interim LIBOR Rate or LIBOR Rate. To the extent the Lessor wishes to require Advances or payment of such additional yield, the Lessor (x) shall so notify the Lessee, in which case such additional yield on the Equity Investment of the Lessor shall be payable to the Lessor at the place indicated in such notice with respect to each Interim Accrual Period or Payment Period commencing at least ten (10) days after the giving of such notice and (y) to the extent possible, shall notify the Lessee at least ten (10) days prior to each date on which interest or yield is payable on the Equity Investment of the amount then due it under this clause.