Tranche Rate Election Clause Samples
The Tranche Rate Election clause defines the process by which a borrower or lender selects the interest rate option applicable to a specific tranche, or portion, of a loan. Typically, this clause outlines the available rate options—such as fixed or floating rates—and the procedures and timing for making an election, including any notice requirements. By establishing clear rules for rate selection, the clause ensures both parties understand how interest will be calculated for each tranche, thereby reducing uncertainty and facilitating effective financial planning.
Tranche Rate Election. Subject to the provisions of this Agreement, the Advances permitted to be made hereunder shall be Tranche Rate Loans and ▇▇▇▇▇▇▇▇ may request that outstanding portions of Advances made hereunder be converted to Tranche Rate Loans. Any request with respect to a new Advance will be made by submitting a Notice of Borrowing to Lender. Once given, and except as provided in clauses (b)-(f) below, a Notice of Borrowing shall be irrevocable and Borrower shall be bound thereby. In the case of any conversion of a Base Rate Loan to a Tranche Rate Loan, any conversion of an existing Tranche Rate Loan to a new Tranche Rate Loan with a different Interest Period, or any conversion of a Tranche Rate Loan to a Base Rate Loan, such election must be made pursuant to a Notice of Conversion. In addition to the other provisions of this Agreement, as a condition to any Tranche Rate election hereunder, on or before the date on which the applicable Tranche Rate Loan is to be advanced or converted hereunder, in each case in accordance with ▇▇▇▇▇▇'s loan policies and procedures periodically in effect, Borrower shall notify Lender of each of the following: (i) the requested amount of such Tranche Rate Loan, (ii) the Interest Period that Borrower has elected to apply to such Tranche Rate Loan, and (iii) the date of the requested advance or conversion. In the absence of a Notice of Conversion submitted to Lender not later than noon Cincinnati, Ohio time (or such later time acceptable to Lender in its sole discretion) on the Business Day on which such Interest Period expires, Borrower will be deemed to have requested that the Tranche Rate Loan then maturing be continued as a Tranche Rate Loan for the same Interest Period commencing on the date on which such expiring Interest Period ends. If ▇▇▇▇▇▇▇▇ requests a new Advance but fails to submit a Notice of Borrowing as required by this paragraph, and if Borrower would otherwise be entitled to elect a Tranche Rate Loan under the terms of this Agreement, Borrower will be deemed to have elected to have such principal amount bear interest as a Tranche Rate Loan with a Tranche Interest Period of one month, commencing on the date of the advance. Unless otherwise permitted by Lender in its sole discretion: (A) in no event may the last day of any Interest Period exceed the Revolving Commitment Termination Date, and (B) in no event may any new Interest Period commence with respect to any Tranche Rate Loan requested to be converted hereunder prior t...
Tranche Rate Election. The Advances made hereunder on the Closing Date shall be Tranche Rate Loans. Notwithstanding the foregoing, the effectiveness and the date of any conversions of Tranche Rate Loans to Daily Simple SOFR Loans (or, if applicable, from Daily Simple SOFR Loans to Tranche Rate Loans) shall be determined by Agent, in each case consistent with the provisions of this Agreement.