Common use of Interest Periods for Term Clause in Contracts

Interest Periods for Term. Out Advances The life of each Term-out Advance is divided into successive periods (each an "Interest Period") for the calculation of interest. The first Interest Period will be the period selected in the Request for that Term-out Advance and each subsequent Interest Period will be the period selected by the relevant Borrower by notice to the Agent received not later than 3.00 p.m. on the third Business Day before the end of the then current Interest Period or, in the case of a Term-out Advance in Sterling, not later than 3.00 p.m. on the day before the last day of the then current Interest Period (being one month, two, three or six months or in any case such other period as the Agent and all the Banks may agree from time to time which does not overrun the third Anniversary). If no such selection notice is received within the time limit mentioned above, the new Interest Period will be three months or such shorter period as is required to ensure that it does not overrun the third Anniversary.