Proposed Disrupted Loans Sample Clauses
The 'Proposed Disrupted Loans' clause defines the procedures and rights applicable when a lender is unable to provide funding under the agreed terms due to a disruption in the financial markets or other specified events. In practice, this clause typically allows the affected lender to notify the borrower and propose alternative funding arrangements, such as different interest rates or funding sources, to continue the loan. Its core function is to ensure continuity of funding and minimize disruption to the borrower, while also protecting the lender from circumstances beyond their control.
Proposed Disrupted Loans. If a Market Disruption Notice is given in respect of a proposed Disrupted Loan, the interest rate applicable on each Interim Lender's participation in that Disrupted Loan will be the rate certified by that Interim Lender to the Interim Facility Agent no later than five (5) Business Days after the Rate Fixing Day to be its cost of funds (from any source which it may reasonably select) plus the Margin.