Loan Rate Calculation Clause Samples
The Loan Rate Calculation clause defines how the interest rate for a loan is determined and applied over the life of the loan. Typically, this clause specifies whether the rate is fixed or variable, outlines the reference rate (such as LIBOR or Prime), and details any margins or adjustments that may be added. For example, it may state that the rate will be reviewed periodically and adjusted according to changes in a benchmark rate. The core function of this clause is to ensure transparency and predictability in how interest charges are calculated, thereby preventing disputes and clarifying the financial obligations of the borrower.
Loan Rate Calculation. Prior to each Funding Date, Lender shall establish the Loan Rate with respect to such Loan, which shall be set forth in the Note to be executed by Borrower with respect to such Loan and shall be conclusive in the absence of a manifest error.
Loan Rate Calculation. Prior to each Funding Date for any Loan, the Collateral Agent shall establish the initial Loan Rate with respect to such Loan, which shall be conclusive in the absence of a manifest error.