MANDATORY COST FORMULA Clause Samples
The Mandatory Cost Formula clause defines how additional costs imposed by regulatory authorities or central banks are calculated and allocated between parties in a financial agreement. Typically, this clause outlines a specific formula or method for determining these costs, which may include reserve requirements, liquidity costs, or other charges that lenders incur due to changes in law or regulation. By specifying a clear calculation method, the clause ensures that both parties understand how such costs will be shared, thereby reducing disputes and providing transparency in the event of regulatory changes.
MANDATORY COST FORMULA. The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank.
MANDATORY COST FORMULA. The Mandatory Cost (to the extent applicable) is an addition to the interest rate to compensate Lenders for the cost of compliance with:
MANDATORY COST FORMULA. On the first day of each Interest Period or Term (or as soon as possible thereafter) the Agent shall determine:
MANDATORY COST FORMULA. The Mandatory Cost Rate will be calculated in accordance with the following formula: where on the day(s) of application of the formula: