Minimum Interest Rates Sample Clauses

Minimum Interest Rates. (i) The rate of interest provided for in Section 2.03(a) of this Agreement is the minimum interest rate. (ii) When entering into this Agreement, the parties hereto have assumed that the interest payable at the rates set out in Section 2.03(a) is not and will not become subject to Swiss Withholding Tax. Notwithstanding that the parties hereto do not anticipate that any payment of interest will be subject to Swiss Withholding Tax, they agree that, in the event that Swiss Withholding Tax should be imposed on interest payments by ACE, the payment of interest due by ACE shall be increased to an amount that (after making any deduction of the Non-refundable Portion of Swiss Withholding Tax as defined below) results in a payment to the Bank entitled to such payment of an amount equal to the payment which would have been due had no deduction of Swiss Withholding Tax been required. For this purpose, the Swiss Withholding Tax shall be calculated on the full grossed-up interest amount. (iii) For the purposes of the foregoing, “Non-refundable Portion of Swiss Withholding Tax” means Swiss Withholding Tax at the standard rate (which, as of the date hereof, is 35%) unless according to an applicable double tax treaty, the Non-refundable Portion of Swiss Withholding Tax for the Bank is a specified lower rate, in which case such lower rate shall be applied in relation to the Bank. No payment pursuant to this clause (iii) shall be in duplication of any payment pursuant to Section 2.09.

Minimum Interest Rates. Section 2.03(d)(ii) is amended by deleting the words “imposed on interest payments by ACE, the payment of interest due by ACE” and substituting the words “imposed on interest payments by ACE and it is unlawful for any reason for ACE to comply with Section 2.09, the payment of interest due by ACE” therefor.