Interest Rate Determination Method Clause Samples
The Interest Rate Determination Method clause defines how the applicable interest rate for a financial agreement or loan will be calculated. Typically, this clause specifies the reference rate (such as LIBOR, SOFR, or a central bank rate), any additional margin or spread to be added, and the frequency at which the rate is set or adjusted. For example, it may state that the interest rate will be the 3-month SOFR plus 2%, reset quarterly. The core function of this clause is to provide a clear, objective process for setting interest rates, thereby reducing ambiguity and potential disputes between parties over interest calculations.
Interest Rate Determination Method. The Company is hereby granted the right to designate from time to time changes in the Interest Rate Determination Method (as defined in the Indenture) in the manner and to the extent set forth in Section 2.4 of the Indenture.
Interest Rate Determination Method. The Borrower is hereby granted the right to designate from time to time changes in the interest rate determination method in the manner and subject to the limitations set forth in Section 2.3 of the Indenture.
Interest Rate Determination Method. The Lessee, with the consent of the Credit Issuer, is hereby granted the right to designate from time to time (i) changes in the Interest Rate Determination Method in the manner and to the extent set forth in Section 2.04 of the Indenture and (ii) the length of the Medium-Term Rate Period or the Maximum Term Rate, as applicable, in the manner and to the extent set forth in Section 2.03(e) of the Indenture.