Implicit Interest Rate definition

Implicit Interest Rate means with respect to any Receivable related to a Lease, the rate set forth with respect to such Receivable on the Schedule of Receivables.

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Implicit Interest Rate means the discount interest rate in a lease which when applied to the minimum lease payments, excluding that portion of the payments representing executory costs to be paid by the lessor, together with any profit thereon, and the unguaranteed residual value accruing to the benefit of the lessor, causes the aggregate present value at the beginning of the lease term to be equal to the fair value of the leased property to the lessor at the inception of the lease, minus any investment tax credit retained by the lessor and expected to be realized by him. This definition does not necessarily purport to include all factors that a lessor might recognize in determining his rate of return.

Implicit Interest Rate for each Unit is a nominal rate per annum equal to 2.50 percentage points (the "Spread") in excess of the Index Rate, compounded monthly and computed on the basis of a year of 360 days and 12 30-day months, which may result in more rent than if a 365-day year were used. "Index Rate" with respect to each Unit means the bond-equivalent yield per annum for U.S. Treasury obligations with an average life of 1.562 years, as in effect on the Unit's Funding Date. For reference, the Index Rate as of October 2, 1996 was 5.778% per annum.

Examples of Implicit Interest Rate in a sentence

Present values are to be computed in each case by discounting at the applicable Implicit Interest Rate set forth in the relevant Appendix.
The Fixed Base Rent installments will be applied to reduce the unamortized balance of the Purchase Price and shall be in amounts sufficient to amortize the Purchase Price of the Unit down to its Purchase Amount at the Initial Implicit Interest Rate over its Base Term.
Each Variable Base Rent installment shall be equal to interest during each Rent Period on the unamortized balance of the Purchase Price of the Unit at the Implicit Interest Rate for the Unit for such Rent Period.
The "Implicit Interest Rate" for each Unit is a ---------------------- nominal rate per annum equal to 2.50 percentage points (the "Spread") in excess of the Index Rate, compounded monthly and computed on the basis of a year of 360 days and 12 30-day months, which may result in more rent than if a 365-day year were used.
Lease Rate Factor and Related Information Periodic Lease Rate Factor: 0.02202421 Implicit Interest Rate: 12.0% Manufacturer's Invoice Cost: $ 228,164.00 Less: 10% Down Payment: 22,816.40 ------------- Net Manufacturer's Invoice Cost: $ 205,347.60 Periodic Lease Payment (Monthly Rent): $ 4,522.62 Relevant Dates First Periodic Rent Payment Date: September 1, 1996, in advance.
The costs of such verification shall be borne by Lessee, except that such costs shall be borne by such Owner Participant if such verification reveals a miscalculation by such Owner Participant that would have resulted in a decrease in the Implicit Interest Rate in respect of the Equipment that is more than 5 basis points, if any, in such Implicit Interest Rate as computed by such accountants, in which case such fees shall be paid by such Owner Participant.
Lease Rate Factor and Related Information Periodic Lease Rate Factor: 0.02202421 Implicit Interest Rate: 12.0% Manufacturer's Invoice Cost: $ 54,920.00 Less: 10% Down Payment 5,492.00 ------------ Net Manufacturer's Invoice Cost: $ 49,428.00 Periodic Lease Payment (Monthly Rent): $ 1,088.61 Relevant Dates First Periodic Rent Payment Date: November 1, 1996, in advance.
The Implicit Interest Rate for each Unit will be established as of its Funding Date.
The Base Rent installments for each Unit will be in amounts sufficient to amortize the Purchase Price for the Unit down to the purchase amount (the "Purchase Amount") over the Base Term at the Implicit Interest Rate, assuming each installment is applied first to interest at the Implicit Interest Rate and then to the unamortized portion of the Purchase Price of the Unit.

More Definitions of Implicit Interest Rate

Implicit Interest Rate means a nominal rate per annum equal to 425 basis points in excess of the Index Rate (as defined below) in effect on each Adjustment Date.

Implicit Interest Rate means the rate of return anticipated by us to be earned by us on our investment in this transaction when the Rental Agreement was entered into (noting such rate may not be specific to your circumstances but may be the rate used by us generally for products of this or a related type);

Implicit Interest Rate means that interest rate which, if used as a discount rate, would cause the present value as of the Closing Date of all Basic Rent payable up to the Basic Term Expiration Date with respect to the Equipment to equal the aggregate Lessor's Cost of such Equipment.