Floating rate instruments Clause Samples
The 'Floating rate instruments' clause defines how interest rates are determined for financial instruments whose rates fluctuate over time. Typically, this clause specifies the reference rate (such as LIBOR or SOFR), the frequency of rate adjustments, and any additional margin applied to the base rate. By outlining these mechanisms, the clause ensures both parties understand how interest payments will vary, providing transparency and reducing disputes over payment calculations as market rates change.
Floating rate instruments. All floating rate instruments shall have a Final Maturity that does not exceed 3 years.
Floating rate instruments. U.S. Government Securities shall have a Final Maturity that does not exceed 3 years, while all other floating rate instruments shall have a Final Maturity that does not exceed 3 years.
Floating rate instruments. U.S. Government Securities shall have a Final Maturity that does not exceed 397 days.
Floating rate instruments. Floating rate securities shall have a Final Maturity that does not exceed 3 years, while all other floating rate instruments shall have a Final Maturity that does not exceed 3 years.
Floating rate instruments instruments (other than Structured Products) with a variable interest rate. The adjustments to the interest rate are usually made no less frequently than three months and are tied to a certain money-market index. These instruments are also referred to as a “floater”.