Interest Assumptions Clause Samples
The Interest Assumptions clause defines the specific rates, methods, or benchmarks used to calculate interest in a contract. It typically outlines how interest will accrue on outstanding amounts, such as unpaid balances or delayed payments, and may specify whether rates are fixed, variable, or tied to an external index. By clearly establishing these parameters, the clause ensures both parties understand how interest is determined, reducing the risk of disputes and providing predictability in financial obligations.
Interest Assumptions. Determinations of any present values under this Agreement and of any present values relating to this Agreement shall be based upon a discount rate equal to 120 percent of the mid-term applicable federal rate (pursuant to section 1274(d) of the Code), compounded semiannually. Unless otherwise elected by the Executive on Exhibit I hereto, the Executive shall be deemed to have elected that such discount rate be determined based on such applicable Federal rate as in effect on the Agreement Date. The Company hereby agrees to use of the discount rate that is elected or deemed to be elected by the Executive.
Interest Assumptions. Determination of any present values relating to this Agreement for purposes of sections 280G and 4999 of the Internal Revenue Code shall be based upon a discount rate equal to 120 percent of the applicable Federal rate (determined under section 1274(d) of the Internal Revenue Code of 1986 and the regulations thereunder), compounded semiannually. The Executive shall be deemed to have elected the discount rate as in effect on the Agreement Date. The Company hereby agrees to use the discount rate that is deemed to be elected by the Executive.