Common use of Line of Credit Optional Interest Clause in Contracts

Line of Credit Optional Interest. Instead of the Regular Line of Credit Interest Rate, Borrower may elect to have up to five (5) advances on the outstanding principal balance of the Line of Credit (each a “Line of Credit LIBO Rate Portion”) during the Line of Credit Availability Period bear interest at the LIBO Rate, as defined below, plus two and one-half percent (L+2.50%), but in no event shall the interest rate be less than four percent (4.00%) per annum (the “Optional Line of Credit Interest Rate”) during an interest rate period designated by Borrower (the “Line of Credit Applicable Interest Period”). Borrower shall not select a Line of Credit Applicable Interest Period that would extend beyond the Line of Credit Expiration Date. Each interest rate is a rate per annum. At the end of any Line of Credit Applicable Interest Period, the interest rate will revert to the Regular Line of Credit Interest Rate, unless Borrower has designated another Optional Line of Credit Interest Rate for that Line of Credit LIBO Rate Portion. Designation of a Line of Credit LIBO Rate Portion shall be made by delivery or telephone facsimile transmission to Bank of written notice signed by an Authorized Officer of such election, including designation of the amount of the proposed Line of Credit LIBO Rate Portion, the proposed Line of Credit Applicable Interest Period and the proposed effective date of the election. The notice shall be given at least three (3) Banking Days in advance of the effective date of the election. The election shall also be subject to the following requirements:

Line of Credit Optional Interest. Instead of the Regular Line of Credit Interest Rate, Borrower may elect to have up to five (5) advances on the outstanding principal balance of the Line of Credit (each a “"Line of Credit LIBO Rate Portion”") during the Line of Credit Availability Period bear interest at the LIBO Rate, as defined below, plus two and onethree-half quarters percent (L+2.50%), but in no event shall the interest rate be less than four percent (4.00L+2.75%) per annum (the “"Optional Line of Credit Interest Rate”") during an interest rate period designated by Borrower (the “"Line of Credit Applicable Interest Period”"). Borrower shall not select a Line of Credit Applicable Interest Period that would extend beyond the Line of Credit Expiration Date. Each interest rate is a rate per annum. At the end of any Line of Credit Applicable Interest Period, the interest rate will revert to the Regular Line of Credit Interest Rate, unless Borrower has designated another Optional Line of Credit Interest Rate for that Line of Credit LIBO Rate Portion. Designation of a Line of Credit LIBO Rate Portion shall be made by delivery or telephone facsimile transmission to Bank of written notice signed by an Authorized Officer of such election, including designation of the amount of the proposed Line of Credit LIBO Rate Portion, the proposed Line of Credit Applicable Interest Period and the proposed effective date of the election. The notice shall be given at least three (3) Banking Days in advance of the effective date of the election. The election shall also be subject to the following requirements: