Applicable Treasury Yield definition

Applicable Treasury Yield at any time shall mean the yield to maturity of United States Treasury Notes with a maturity equal to the remaining average life of the indebtedness evidenced by the applicable Schedule through the Maximum Lease Term as published in The Wall Street Journal three (3) Business Days prior to the Termination Date or a Section 9 Termination Date, whichever is applicable. If no maturity exactly corresponds to such remaining average life, the Applicable Treasury Yield shall be interpolated on a straight-line basis, utilizing the yields for the two maturities which most closely correspond to the requisite maturity."

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Applicable Treasury Yield at any time shall mean the yield to maturity of United States Treasury Notes with a maturity equal to the remaining average life of the Term as published in The Wall Street Journal three (3) Business Days prior to the Termination Date. If no maturity exactly corresponds to such remaining Term, the Applicable Treasury Yield shall be interpolated on a straight- line basis, utilizing the yields for the two maturities which most closely correspond to the requisite maturity.

Applicable Treasury Yield means, as of any date, the per annum rate of interest for "on-the-run" United States Treasury obligations having the maturity which corresponds to the weighted average life of the Receivables, as selected by the Agent and the underwriters or other Persons submitting bids as to spread-to-treasuries in determining the Term Out Rate.

Examples of Applicable Treasury Yield in a sentence

If no maturity exactly corresponds to such remaining Term, the Applicable Treasury Yield shall be interpolated on a straight-line basis, utilizing the yields for the two maturities which most closely correspond to the requisite maturity.
For example, a change of 10 basis points in the Applicable Treasury Yield from 5.97% is expected to change the Lessor's IRR by 5-8 basis points.
The term "Applicable Treasury Yield" at any time shall mean the yield to maturity of United States Treasury Notes with a maturity equal to the remaining average life of the Term of the Lease as published in The Wall Street Journal two (2) Business Days prior to the Termination Date.
However, Lessor has furnished Lessee with Lessor's internal rate of return ("IRR") calculated as described below for an Applicable Treasury Yield of 5.97% and Lessor and Lessee agree that as a means of Lessee verifying Lessor's determination of Basic Term Lease Rate factors and the FMV Special Purchase Option Price factors and related Stipulated Loss Value, Lessor's IRR is expected to change by only 50-80% of the change in the Applicable Treasury Yield depending on the particular calendar quarter involved.
In the case of an Equipment Loan, the interest rate shall be either, at the election of Borrower, the Base Lending Rate or the Applicable Treasury Yield Rate, as such term is defined in the Schedule.
Nevertheless, whether or not Lessor's IRR is within the foregoing parameters, Lessor agrees that Lessee may in its sole discretion and at Lessee's expense have Lessee itself or an accounting firm chosen by Lessee verify that Lessor has calculated Basic Term Lease Rate factors and the FMV Special Purchase Option Price factors and related Stipulated Loss Values so as to maintain Lessor's pre-tax yield at the same spread over the Applicable Treasury Yield as when the Applicable Treasury Yield was 5.97%.
For purposes hereof, "Reinvestment Rate" shall mean the sum of (i) the Applicable Treasury Yield plus (ii) fifty (50) basis points.
Actual Basic Term Lease Rate factors and actual FMV Special Purchase Option Price factors and related Stipulated Loss Values will be determined based on the Applicable Treasury Yield (as hereinafter defined) on the date Lessor prepares the applicable Schedule for sending to and signature by Lessee as contemplated below (the "SCHEDULE PREPARATION DATE") so as to maintain Lessor's pre-tax yield at the same spread over the Applicable Treasury Yield as when the Applicable Treasury Yield was 5.97%.
If there is more than one class of U.S. Treasury Notes maturing in the month of maturity to be used for purposes of the preceding sentence, then the Applicable Treasury Yield shall be the average of the ask yields of such Notes.

More Definitions of Applicable Treasury Yield

Applicable Treasury Yield means the yield to maturity implied by (i) the yields reported as of 3:00 p.m. (New York City time) on the Additional Term Loan Rate Determination Date, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen that corresponds most closely to Page PX1, for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Additional Term Loan Maturity Date or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the Additional Term Loan Rate Determination Date, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Additional Term Loan Maturity Date. Such implied yield will be determined, if necessary, by (a) converting U.S. Treasury ▇▇▇▇ quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the actively traded U.S. Treasury security with the maturity closest to and greater than the Additional Term Loan Maturity Date and (2) the actively traded U.S. Treasury security with the maturity closest to and less than the Additional Term Loan Maturity Date. The Applicable Treasury Yield shall be rounded to two decimal places (with rounding upward if the third decimal place is 5 or higher and rounding downward if the third decimal place is 4 or lower).

Applicable Treasury Yield means the yield to maturity implied by (i) the yields reported as of 3:00 p.m. (New York City time) on the Fixed Rate Determination Date, on the display designated as “Page PX1” (or such other display as may replace Page PX1 on Bloomberg or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1, for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Fixed Rate Term, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the Fixed Rate Determination Date, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Fixed Rate Term. Such implied yield will be determined, if necessary, by (a) converting U.S. Treasury ▇▇▇▇ quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the actively traded U.S. Treasury security with the maturity closest to and greater than the Fixed Rate Term and (2) the actively traded U.S. Treasury security with the maturity closest to and less than the Fixed Rate Term. The Applicable Treasury Yield shall be rounded to two decimal places.

Applicable Treasury Yield at any time shall mean the yield to maturity of United States Treasury Notes with a maturity equal to the remaining average life of the Term of the Lease as published in The Wall Street Journal two (2) Business Days prior to the Termination Date. If no maturity exactly corresponds to such remaining Term, the Applicable Treasury Yield shall be interpolated on a straight-line basis, utilizing the yields for the two maturities which most closely correspond to the requisite maturity. For purposes hereof, "Assumed Interest Rate" shall mean the sum of (i) the Base Index, plus (ii) one hundred twenty-five (125) basis points. "Base Index" shall mean the five (5)-year Treasury Constant Maturities rate as published in The Wall Street Journal on the second Business Day immediately preceding the Lease Commencement Date.

Applicable Treasury Yield means the bid side yield on interpolated U.S. Treasury Security for the average life of the loan calculated using the interest rate on the Note, the scheduled remaining payments on the Note from and after the date of prepayment to and including the maturity date of the loan, and the principal balance of the loan being prepaid. If the Applicable Treasury Yield is no longer available on Bloomberg, Lender shall determine such Applicable Treasury Yield from another source selected by Lender. Except as provided in paragraph A.3 of this Addendum, no partial prepayments are permitted. Such prepayment premium shall be due and payable if the Loan is prepaid for any reason during the first 19.0 years of the Note, including without limitation, a prepayment arising because of an acceleration of the Loan.