LIBOR Based Rate Loans Clause Samples
The LIBOR Based Rate Loans clause defines how interest rates for certain loans are determined by referencing the London Interbank Offered Rate (LIBOR) as a benchmark. In practice, this means that the interest rate charged on the loan will fluctuate in line with changes to LIBOR, often with an added margin specified in the agreement. This clause ensures that both lender and borrower have a clear, market-based method for calculating interest, providing transparency and aligning the loan's cost with prevailing market conditions.
LIBOR Based Rate Loans. Apart from the provisions of Section 2.5(c) above, if applicable, no portion of any LIBOR Based Rate Loan may be prepaid at any time unless the Borrower first satisfies in full its obligations under Section 2.8 below arising from such prepayment.
LIBOR Based Rate Loans. LIBOR Based Rate Loans may not be prepaid on any date other than the last day of the selected Interest Period unless Borrower gives Agent written notice of such intention prior to 1:00 p.m. on a Business Day which is no less than two (2) Business Days prior to the date it intends to make such prepayment (unless such prepayment must be immediate because of the illegality of LIBOR Based Rate Loans as set forth in Section 2.4(c)(iv) hereof, in which case Borrower shall not be required to provide such notice) and pays a prepayment fee in accordance with Section 2.4(c)(v) above. All such prepayments must be of the full amount of the applicable LIBOR Based Rate Loan plus all accrued but unpaid interest, fees and Expenses related to such prepaid Loan. Borrower agrees that this fee is an estimate of Lender's damages and not a penalty.
LIBOR Based Rate Loans. LIBOR Based Rate Loans shall be selected for a period of either one (1), two (2), or three (3) months' duration, as Borrower may elect, during which a LIBOR Based Rate is applicable ("LIBOR Interest Period"); provided, however, that (a) if the LIBOR Interest Period would otherwise end on a day which shall not be a Good Business Day, such LIBOR Interest Period shall be extended to the next succeeding Good Business Day, unless such Good Business Day falls in another calendar month, in which case such LIBOR Interest Period shall end on the next preceding Good Business Day subject to clause (c) below; (b) interest shall accrue from and including the first day of each LIBOR Interest Period to, but excluding, the day on which any LIBOR Interest Period expires; and (c) with respect to any LIBOR Interest Period which begins on the last Good Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such LIBOR Interest Period), the LIBOR Interest Period shall end on the last Good Business Day of a calendar month. All accrued and unpaid interest on a LIBOR Based Rate Loan must be paid in full on the day the applicable LIBOR Interest Period expires. No LIBOR Interest Period may end after the Maturity Date. Subject to all of the terms and conditions applicable to a request that a new Advance be a LIBOR Based Rate Loan, Borrower may extend LIBOR Based Rate Loans as of the last day of the applicable LIBOR Interest Period to a new LIBOR Based Rate Loan. If Borrower does not notify Agent of its desire to extend a LIBOR Based Rate Loan or repay such Advance prior to the expiration of the applicable LIBOR Interest Period, such Advance shall automatically be converted to a LIBOR Market Index Rate Loan.
LIBOR Based Rate Loans. Subject to the terms of the Agent Fee Letter, apart from the provisions of Section 2.5(c) above, if applicable, no portion of any LIBOR Based Rate Loan may be prepaid at any time unless Borrower first satisfies in full its obligations under Section 2.8 below arising from such prepayment.