Automatic interest rate option definition

Automatic interest rate option means an option referred to in the second subparagraph of Article 325e(2) of Regulation (EU) No 575/2013, either explicit or embedded in another financial instrument, including an option under which the institution is likely to provide its counterparty with pay-outs yet absent of a contractual obligation (implicit option), where the pay-outs of the options are interest rate sensitive and the exercise of the option is purely driven by the monetary incentives of the option holder.
View Source
Automatic interest rate option means an explicit or implicit option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No
View Source
Automatic interest rate option means an explicit or implicit option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No 575/2013 of the European Parliament and of the Council (2), including an option under which the institution is likely to provide its counterparty with a pay-out irrespective of a contractual obligation, that complies with all of the following:
View Source

Related to Automatic interest rate option

  • Interest Rate Option means any LIBOR Rate Option or Base Rate Option.

  • Floating Rate Option has the meaning given to it in the ISDA Definitions;

  • Base Rate Option means the option of the Borrower to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(a)(i) [Revolving Credit Base Rate Option].

  • LIBOR Rate Option means the option of the Borrower to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(a)(ii) [Revolving Credit LIBOR Rate Option].

  • Rate Option means the Eurodollar Rate or the Floating Rate.