Term RFR Option Sample Clauses
The Term RFR Option clause defines the terms under which a loan or financial instrument may bear interest based on a risk-free rate (RFR) for a specified term. In practice, this clause outlines how the interest rate is calculated using a relevant RFR, such as SOFR or SONIA, over a set period, and details the procedures for selecting the interest period, rate calculation, and payment dates. Its core function is to provide a clear and standardized method for determining interest payments in contracts that reference risk-free rates, thereby reducing ambiguity and aligning with market conventions as benchmarks transition away from traditional rates like LIBOR.
Term RFR Option. On and after the Term RFR Transition Date with respect to any applicable Alternative Currency, in the case of Loans denominated in any Alternative Currency that bear interest based on Term RFR, a rate per annum (computed on the basis of a year of 360 days and actual days elapsed, except that interest on Loans denominated in Alternative Currencies as to which market practice differs from the foregoing shall be computed in accordance with market practice for such Loans) equal to the Term RFR for such Alternative Currency as determined for each applicable Interest Period plus the RFR Adjustment plus the Applicable Rate.
Term RFR Option. On and after the Term RFR Transition Date with respect to any applicable Affected Currency, in the case of Loans denominated in any Affected Currency that bear interest based on a Term RFR, a rate per annum (computed on the basis of a year of 360 days and actual days elapsed, except that interest on Loans denominated in Affected Currencies as to which market practice differs from the foregoing shall be computed in accordance with market practice for such Loans) equal to the Term RFR for such Affected Currency as determined for each applicable Interest Period plus the RFR Adjustment plus the Applicable Margin.
Term RFR Option. On and after the Term RFR Transition Date with respect to any Currency, in the case of Loans denominated in such Currency that bear interest based on Term RFR, a rate per annum (subject to Section 2.13(e)) equal to the Term RFR for such Currency as determined for each applicable Interest Period plus the Applicable Rate.
Term RFR Option. In the case of Term RFR Loans denominated in Sterling or Canadian Dollars, a rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Term RFR for such Currency as determined for each applicable Interest Period plus the Term RFR Adjustment plus the Applicable Margin..