Interest Rate Collar Clause Samples

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Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit.
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Interest Rate Collar. Until the Indebtedness is paid in full, Borrower shall keep in place an interest rate collar issued by a firm rated at least A by any major rating institution or by a firm acceptable to Lender. The collar shall cover a principal amount of at least 50% of the Loan. The collar shall become effective and begin to pay benefits to Borrower in the event that the per annum interest payable under Section 2.2 exceeds 11%.
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Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Loans for which Legal Agreements incorporate the 2017 Loan Regulations 1. For the purposes of this Appendix 2, “Loan Agreement” means (i) each loan agreement referred to in the table in Appendix 2 of the Letter Agreement; (ii) the loan agreement for each project or program referred to in the table below; and (iii) the loan agreement for any other project or program not referred to in the Letter Agreement or table below, and which, in the case of (i), (ii) and (iii), has been or will be approved by the Board before 1 January 2022. Loan or Project No. Project Name 4050 Second Health System Enhancement to Address and Limit COVID-19 under APVAX 4089 Facilitating Youth School-to-Work Transition Program – Subprogram 3 4102 Local Governance Reform Program – Subprogram 2 55105-001 Build Universal Health Care Program – Subprogram 1 54332-001 Supporting Innovation in the Philippine Technical and Vocational Education and Training System Project ▇▇▇▇▇-▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Project
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Interest Rate Collar. The Borrower is party to a no-fee interest rate collar (“Collar”) with a notional amount of $100,000,000, a 30-day LIBOR rate range of 6.36% (floor) to 9.50% (ceiling) and an expiration date of March, 2003. The purpose of the Collar is to provide a hedge against the effects of rising interest rates. Borrower will make payments under the terms of the Collar when the 30-day LIBOR rate is below the floor to raise the effective rate to 6.36%, and will receive payments when the 30-day LIBOR rate is above the ceiling, to lower the effectiveness rate to 9.50%, thus assuring that the Borrower’s effective 30-day LIBOR rate is always within the above-stated range. When the 30-day LIBOR rate is within the range, no payments are made or received under the Collar. Amounts payable or receivable under the Collar will be accounted for as an adjustment to interest expense.
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Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Southeast Asia Department 29 October 2021 ▇▇. ▇▇▇▇▇▇ ▇. Dominguez Secretary Department of Finance ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ of the Philippines Dear Secretary ▇▇▇▇▇▇▇▇▇:
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Interest Rate Collar. Until the Indebtedness is paid in -------------------- full, Borrower shall keep in place an interest rate cap or collar issued by a firm rated at least A by any major rating institution or by a firm acceptable to Lender. The collar shall cover a principal amount of at least 75% of the Loan. The collar shall become effective and begin to pay benefits to Borrower in the event that the Borrower's Spread falls below 13.5%. Notwithstanding the forgoing Borrower will not be required to obtain such cap or collar so long as the Borrower's Spread exceeds 14.5%.
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Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. 28 October 2021 Ms. ▇▇▇▇▇▇ ▇▇▇▇▇▇ Secretary Economic Relations Division Ministry of Finance Government of Bangladesh Dhaka, Bangladesh Dear Ms. Secretary: Subject: Notification of the Alternative Reference Rates for ADB’s Sovereign Operation Loans This letter relates to the notification of the new alternative reference rates in connection with the London interbank offered rate (“LIBOR”) transition for the Asian Development Bank (“ADB”). In July 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates the administrator of LIBOR, announced its intention to phase out the reference rate by the end of 2021. On 5 March 2021, the FCA announced that the publication of LIBOR on a representative basis will cease for most settings immediately after 31 December 2021, and for certain United States dollar LIBOR settings immediately after 30 June 2023. As LIBOR is used as a reference rate for regular loans made from ADB’s Ordinary Capital Resources under sovereign operations(“regular OCR Loans”), ADB has been preparing for the discontinuation of LIBOR to ensure an orderly transition to alternative reference rates for the benefit of ADB and its borrowers. In October 2020 ADB’s Board of Directors (the “Board”) approved an amendment to the OrdinaryOperations Loan Regulations Applicable to Regular Loans Made from ADB’s Ordinary Capital Resources (“OCR Loan Regulations”) to enable the reference rate transition of regular OCR Loans. In connection with this approval, ADB previously sought your consent to the application ofthe amended OCR Loan Regulations (the “Amendment Letter”). On 26 July 2021, the Board approved the reference rate transition for ADB’s LIBOR-based loan product, including to rename it the ...
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Related to Interest Rate Collar

  • Interest Rate Protection No later than the 90th day after the Closing Date, the Borrower shall enter into, and for a minimum of three years thereafter maintain, Hedging Agreements acceptable to the Administrative Agent that result in at least 50% of the aggregate principal amount of its funded long-term Indebtedness being effectively subject to a fixed or maximum interest rate acceptable to the Administrative Agent.

  • Interest Rate Computations All interest hereunder shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.

  • Interest Rate Cap Agreement (a) Prior to or contemporaneously with the Closing Date, Borrower shall have obtained the Interest Rate Cap Agreement. The Interest Rate Cap Agreement shall be maintained throughout the term of the Loan with an Acceptable Counterparty. If, at any time, the interest rate cap provider ceases to be an Acceptable Counterparty, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement at Borrower’s sole cost and expense within ten (10) days of receipt of notice from Lender that the interest rate cap provider is no longer an Acceptable Counterparty. (b) Borrower shall collaterally assign to Lender pursuant to the Collateral Assignment of Interest Rate Cap Agreement all of its right, title and interest to receive any and all payments under the Interest Rate Cap Agreement and shall deliver to Lender counterparts of such Collateral Assignment of Interest Rate Cap Agreement executed by Borrower and the Acceptable Counterparty and notify the Acceptable Counterparty of such collateral assignment (either in such Interest Rate Cap Agreement or by separate instrument). At such time as the Loan is repaid in full, all of Lender’s right, title and interest in the Interest Rate Cap Agreement shall terminate and Lender shall execute and deliver at Borrower’s sole cost and expense, such documents as may be required to evidence Lender’s release of the Collateral Assignment of Interest Rate Cap Agreement and to notify the Acceptable Counterparty of such release. (c) Borrower shall comply with all of its obligations under the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Acceptable Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into an account designated by Lender. Borrower shall take all actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Acceptable Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder. (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement as and when required hereunder, or fails to maintain such agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement, as applicable, and the cost incurred by Lender in purchasing the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement, as applicable, shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender. (e) In connection with the Interest Rate Cap Agreement and any Replacement Interest Rate Cap Agreement, Borrower shall, within a reasonable period of time after the effectiveness of such Interest Rate Cap Agreement or Replacement Interest Rate Cap Agreement, obtain and deliver to Lender (1) a confirmation evidencing such Interest Rate Cap Agreement or Replacement Interest Rate Cap Agreement, (2) any guaranty or guaranties therefor, (3) executed counterparts to the Collateral Assignment of Interest Cap Agreement, and (4) an opinion from counsel (which counsel may be in house counsel for the Acceptable Counterparty) for the Acceptable Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that: (i) the Acceptable Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement or the Replacement Interest Rate Cap Agreement, as applicable; (ii) the execution and delivery of the Interest Rate Cap Agreement or the Replacement Interest Rate Cap Agreement, as applicable, by the Acceptable Counterparty, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by laws (or equivalent organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property; (iii) all consents, authorizations and approvals required for the execution and delivery by the Acceptable Counterparty of the Interest Rate Cap Agreement or the Replacement Interest Rate Cap Agreement, as applicable, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with any governmental authority or regulatory body is required for such execution, delivery or performance; and (iv) the Interest Rate Cap Agreement or the Replacement Interest Cap Agreement, as applicable, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Acceptable Counterparty and constitutes the legal, valid and binding obligation of the Acceptable Counterparty, enforceable against the Acceptable Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). (f) Notwithstanding anything to the contrary contained in this Section 5.24 or elsewhere in this Agreement, if, at any time, Lender converts the Loan from a LIBOR Rate Loan to either a Base Rate Loan or an Alternate Rate Loan in accordance with Section 2.4 above (each, a “LIBOR Conversion”), then within thirty (30) days after such LIBOR Conversion, Borrower shall either (A) enter into, make all payments under, and satisfy all conditions precedent to the effectiveness of, a Substitute Interest Rate Protection Agreement (and in connection therewith, but not prior to Borrower taking all the actions described in this clause (f), Borrower shall have the right to terminate any then-existing Interest Rate Protection Agreement) or (B) cause the then-existing Interest Rate Protection Agreement to be modified such that such then-existing Interest Rate Protection Agreement satisfies the requirements of a Substitute Interest Rate Protection Agreement as set forth below in the definition thereof (a “Converted Interest Rate Protection Agreement”).

  • Interest Rate Agreements 13 Investment..................................................................13

  • Interest Rate Hedging In order to take advantage of the current favorable interest-rate climate, the Commission agrees that the actual reasonable cost of PG&E’s interest rate hedging activities with respect to the financing necessary for the Settlement Plan shall be reflected and recoverable in PG&E’s retail gas and electric rates without further review.