Eurodollar Reserve Compensation Sample Clauses
The Eurodollar Reserve Compensation clause requires a borrower to compensate a lender for additional costs incurred due to reserve requirements imposed on Eurodollar deposits. In practice, if regulatory authorities require banks to hold a certain percentage of their Eurodollar deposits as reserves, the lender may pass on the associated costs to the borrower under this clause. This ensures that the lender is not financially disadvantaged by regulatory changes, effectively allocating the risk of increased reserve costs to the borrower and maintaining the lender's expected return on the loan.
Eurodollar Reserve Compensation. Each Lender may require the Borrower to pay, contemporaneously with each payment of interest on any LIBOR Rate Loan, additional interest at a rate per annum determined by such Lender up to but not exceeding the excess of (i)(A) the applicable LIBOR Rate divided by (B) one minus the Eurodollar Reserve Percentage for such day over (ii) the applicable LIBOR Rate. Any Lender desiring to require payment of such additional interest shall so notify the Borrower and the Administrative Agent, in which case such additional interest on the LIBOR Rate Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each LIBOR Interest Period commencing at least three Business Days after the giving of such notice.
Eurodollar Reserve Compensation. If in any Monthly Interest Period any Lender is required to maintain any reserves (including any marginal, special, emergency or supplemental reserves) for any eurocurrency funding or otherwise in respect of the Senior Secured Notes, then upon demand by such Lender the Borrower will pay such Lender on the Interest Payment Date for such Monthly Interest Period additional interest in an amount equal, for each day on which such reserves are required to be maintained by such Lender, to the difference between (i) interest for such day at the One-Month LIBO Rate determined for such Monthly Interest Period (the "Reference Rate Interest") multiplied by a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate amount (expressed as a decimal) certified by such Lender in a notice delivered to the Borrower, to be the reserve percentage (including any marginal, special, emergency or supplemental reserves) established by the Board and in effect as to such Lender for such day for eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of the Board), including all reserve percentages imposed pursuant to such Regulation D, and (ii) the Reference Rate Interest for such day.