Prime Rate Borrowing Clause Samples
The Prime Rate Borrowing clause defines the terms under which a borrower may access funds at an interest rate tied to the lender's prime rate. Typically, this clause specifies how the prime rate is determined, how often it may change, and the process for notifying the borrower of rate adjustments. It applies to loans or credit facilities where the interest rate is variable and linked to the lender's published prime rate, ensuring that both parties understand how interest costs may fluctuate. The core function of this clause is to provide a transparent mechanism for setting and adjusting interest rates, thereby allocating the risk of interest rate changes between the lender and borrower.
Prime Rate Borrowing. If any Borrower is required to prepay any LIBOR Loan immediately as provided in Section 2.2.3, then concurrently with such prepayment, such Borrower shall borrow, in the amount of such prepayment, a Prime Rate Loan.
Prime Rate Borrowing. The Borrower shall give the Bank a request for Prime Rate Borrowing (effective upon receipt) of any Prime Rate Loans under the Line of Credit, specifying the date and amount thereof, not later than 2:00 P.M. on the date of such request and upon fulfillment of the applicable conditions set forth in Article III and assuming no Event of Default has occurred or is occurring hereunder, the Bank shall make such Prime Rate Loan available to the Borrower in immediately available funds by crediting the amount thereof to Borrower's primary operating account with the Bank. Notwithstanding the foregoing, the provisions of this Section 2.2 shall not apply in the event the Borrower enters into a LMCS Agreement with Bank, a current form of which is attached as Exhibit 2.2(1).
Prime Rate Borrowing. Subject to Section 3.2(e) hereof, the Borrower shall pay interest to the Lender in Canadian Dollars at the Lender's Branch of Account on any amounts outstanding from time to time hereunder as a Prime Rate Borrowing made to the Borrower. Such interest shall accrue from day to day, shall be calculated monthly for the actual number of days elapsed, and shall be payable in arrears on each Interest Payment Date at a variable rate of interest per annum equal to the Prime Lending Rate. The rate of interest per annum with respect to any Prime Rate Borrowing is calculated on the basis of a calendar year.
Prime Rate Borrowing