Negative Interest Rates Clause Samples
The Negative Interest Rates clause defines how negative interest rates are handled in the context of a contract or financial agreement. It typically specifies whether parties must pay interest to the other party if benchmark rates fall below zero, and outlines the calculation method or any applicable thresholds. This clause ensures clarity and fairness in situations where market conditions result in negative rates, preventing disputes and allocating the risk of such occurrences between the parties.
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Negative Interest Rates. Party A and Party B agree that: if, with respect to a Calculation Period for a Transaction, a party ("X") is obligated to pay a Floating Amount that is a negative number (either by reason of a negative Floating Rate or the subtraction of a Spread from the Floating Rate), the Floating Amount with respect to X for that Calculation Period will be deemed to be zero, and the other party ("Y") will pay to X the absolute value of the negative Floating Amount, in addition to any amounts otherwise owned by Y to X, on the Payment Date such Floating Amount would have been payable if it had been a positive number. Any amounts paid by Y to X pursuant to this provision will be paid to such account as X may designate (unless Y gives timely notice of a reasonable objection to such designation) in the currency in which that Floating Amount would have been paid if it had been a positive number (and without regard to the currency in which Y is otherwise obligated to make payments).
Negative Interest Rates. Party A and Party B agree that: if, with respect to a Calculation Period for a Transaction, a party ("X") is obligated to pay a Floating Amount that is a negative number (either by reason of a negative Floating Rate or the subtraction of a Spread from the Floating Rate), the Floating Amount with respect to X for that Calculation Period will be deemed to be zero.
Negative Interest Rates. In the event that interest rates should become negative, we may pass on to you any charges or deposit costs charged to us by our bank in connection with the sums held for you in our Client account. We will provide you with notice of the amount of any charges or deposit costs.
Negative Interest Rates. Chase and Counterparty agree that, if with respect to a calculation period, either party is obligated to pay a floating amount that is a negative number (either due to a quoted negative floating rate or by operation of a spread that is subtracted from the floating rate), the floating amount with respect to that party for that calculation period will be deemed to be zero, and the other party will pay to that party the absolute value of the negative floating amount as calculated, in addition to any amounts otherwise owed by the other party for that calculation period, on the payment date that the floating amount would have been due if it had been a positive number.
Negative Interest Rates. Party A and Party B agree that:
(i) if, with respect to a Calculation Period for a Transaction, a party ("X") is obligated to pay a Floating Amount that is a negative number (either by reason of a negative Floating Rate or the subtraction of a Spread from the Floating Rate), the Floating Amount with respect to X for that Calculation Period will be deemed to be zero, and the other party ("Y") will pay to X the absolute value of the negative Floating Amount, in addition to any amounts otherwise owed by Y to X, on the Payment Date such Floating Amount would have been payable if it had been a positive number. Any amounts paid by Y to X pursuant to this provision will be paid to such account as X may designate (unless Y gives timely notice of a reasonable objection to such designation) in the currency in which that Floating Amount would have been paid if it had been a positive number (and without regard to the currency in which Y is otherwise obligated to make payments).
(ii) if, with respect to one or more Compounding Periods for a Transaction for which "Compounding" or "Flat Compounding" is specified to be applicable, the Compounding Period Amount, the Basic Compounding Period Amount or the Additional Compounding Period Amount is a negative number (either by reason of a negative Floating Rate or by the subtraction of a Spread from the Floating Rate), then the Floating Amount for the Calculation Period in which that Compounding Period or those Compounding Periods occur will be either the sum of all Compounding Period Amounts, or the sum of all Basic Compounding Period Amounts and all Additional Compounding Period Amounts in that Calculation Period (whether positive or negative). If such sum is a negative number, subparagraph (i) of this provision shall apply in respect of such Floating Amount.
Negative Interest Rates. Swap Transaction" means, for the purposes of this provision concerning Negative Interest Rates, an interest rate exchange or swap transaction, including transactions involving a single currency or two or more currencies. All capitalized terms used in this provision shall have the meanings as are ascribed to such terms in the 1991 ISDA Definitions as published by the International Swaps and Derivatives Association, Inc. unless otherwise defined herein.
Negative Interest Rates