Common use of FIXED-INTEREST LOANS Clause in Contracts

FIXED-INTEREST LOANS. If a fixed interest rate has been agreed, HBU shall, not later than two weeks prior to an agreed interest refixing date, notify the Borrower in writing of the proposed - fixed or floating - interest rate for the next interest period, subject to the provisions contained in 2.3 below. Agreement on the interest rate must be reached no later than one week prior to the interest refixing date. If the Borrower fails to respond to the above notice from HBU at least one week prior to the interest refixing date, the Borrower shall be deemed to have opted for the interest rate applicable to the shortest interest period referred to in the notice. If HBU fails to give the above notice in a timely manner, it shall nevertheless be free to do so at a later date. In that event, HBU shall offer the Borrower the lower of the interest rate it would have offered on the basis of its then prevailing rates had the notice been given in time or the rate it is able to offer based on its prevailing rates at the time of the later notice. Agreement on the interest rate must be reached within two weeks after the Borrower has received such notice from HBU.

FIXED-INTEREST LOANS. If a fixed interest rate has been agreed, HBU shall, not later than two weeks prior to an agreed interest refixing date, notify the Borrower in writing of the proposed - — fixed or floating - — interest rate for the next interest period, subject to the provisions contained in 2.3 below. Agreement on the interest rate must be reached no later than one week prior to the interest refixing date. If the Borrower fails to respond to the above notice from HBU at least one week prior to the interest refixing date, the Borrower shall be deemed to have opted for the interest rate applicable to the shortest interest period referred to in the notice. If HBU fails to give the above notice in a timely manner, it shall nevertheless be free to do so at a later date. In that event, HBU shall offer the Borrower the lower of the interest rate it would have offered on the basis of its then prevailing rates had the notice been given in time or the rate it is able to offer based on its prevailing rates at the time of the later notice. Agreement on the interest rate must be reached within two weeks after the Borrower has received such notice from HBU.