Common use of Limitation on Types of Loans; Illegality Clause in Contracts

Limitation on Types of Loans; Illegality. Anything herein to the contrary notwithstanding, if, on or prior to the determination of LIBOR for any Accrual Period: (a) the Lender determines, which determination shall be conclusive, that quotations of interest rates for the relevant deposits referred to in the definition of “LIBOR” in Section 1.01 are not being provided; (b) the Lender reasonably determines, which determination shall be conclusive, that LIBOR determined for any Accrual Period would not adequately and fairly reflect the cost to a commercial bank funding the Loans on a matched basis in the London interbank market of making or maintaining the Loans for such Accrual Period; or (c) it becomes unlawful for the Lender to make or maintain Loans hereunder using LIBOR; then the Lender shall give the Borrower prompt notice thereof and, for such Accrual Period and for each subsequent Accrual Period during which such condition remains in effect, the Borrower shall pay interest on the Principal Amount at a rate per annum equal to the Prime Rate plus the Applicable Margin.