Rate calculation. (1) The Guar- xxxxx Fee rate generally shall vary in- versely with the ratio of Equity to Long-Term Debt (Variable Rate) of the Person who we consider to be the pri- xxxx source of credit in the trans- action (Credit Source), for example, (i) The long term time charterer (where the charter hire represents the source of payment of interest and prin- cipal with respect to the Obligations), (ii) The guarantor of the Obligations, (iii) The Obligor, or (iv) The bareboat charterer. (2) Where the Variable Rate is used, we may make such adjustments to the computation of Equity and Long-Term Debt considered necessary to reflect more accurately the financial condi- tion of the Credit Source. (3) We shall base our determination of Equity and Long-Term Debt on in- formation contained in forms or state- ments on file with us prior to the date on which the Guarantee Fee is to be paid. (4) With our consent, you may in- clude in Equity and exclude from Long- Term Debt, any subordinated indebted- ness representing loans from any credit source.
Appears in 11 contracts
Samples: Title Xi Reserve Fund and Financial Agreement, Title Xi Reserve Fund and Financial Agreement, Title Xi Reserve Fund and Financial Agreement
