Fixed Rate/Floating Rate Notes Sample Clauses
The Fixed Rate/Floating Rate Notes clause defines the interest payment structure for debt securities, specifying whether the notes will accrue interest at a predetermined fixed rate or at a variable rate that may change over time. In practice, a fixed rate note pays a consistent interest amount throughout its term, while a floating rate note adjusts its interest payments periodically based on a reference rate, such as LIBOR or SOFR. This clause ensures clarity for both issuers and investors regarding how interest will be calculated and paid, thereby reducing uncertainty and aligning expectations about future cash flows.
Fixed Rate/Floating Rate Notes. If this Note is specified on the face hereof as a “Fixed Rate/Floating Rate Note”, this Note will bear interest at the rate per annum specified on the face hereof as the Fixed Interest Rate; provided, however, that commencing on the Floating Rate Commencement Date, this Note will bear interest at the rate determined by reference to the applicable Interest Rate Basis or Interest Rate Bases: (1) plus or minus the applicable Spread, if any; and/or (2) multiplied by the applicable Spread Multiplier, if any; provided, however, that interest on this Note will not be less than zero. Commencing on the first Interest Reset Date, the rate at which this Fixed Rate/Floating Rate Note is payable will be reset as of each Interest Reset Date.