Interest Rate Collar definition

Interest Rate Collar means the establishment of an upper and a lower limit for a variable interest rate.

Interest Rate Collar means a combination of a ceiling and a floor that sets an upper and a lower limit for the Variable Rate.

Interest Rate Collar means, with respect to all or any amount of the Withdrawn Loan Balance, a combination of a ceiling and a floor that sets an upper and a lower limit: (a) in respect of any portion of the Loan that accrues interest at a Variable Rate based on a Reference Rate and the Fixed Spread, for the Variable Rate; or (b) in respect of any portion of the Loan that accrues interest at a Variable Rate based on a Reference Rate and the Variable Spread, for the Reference Rate.

Examples of Interest Rate Collar in a sentence

• Accordingly, during the Execution Period, the Bank may reduce the lower limit of the Interest Rate Collar such that the corresponding premium does not exceed the premium on the upper limit of the Interest Rate Collar.

• If the Borrower selects the upper and lower limits, the premium payable to the Bank by the Borrower with respect to the upper limit of the Interest Rate Collar will be offset by the premium payable by the Bank with respect to the lower limit of the Interest Rate Collar.

• Nevertheless, the premium payable to the Borrower by the Bank in respect of the lower limit of the Interest Rate Collar may in no case exceed the premium payable by the Borrower to the Bank with respect to the upper limit of the Interest Rate Collar.

• Nevertheless, the premium payable to the Borrower by the Bank in respect of the lower limit of the Interest Rate Collar shall in no case exceed the premium payable by the Borrower to the Bank with respect to the upper limit of the Interest Rate Collar.

• Upon the establishment of an Interest Rate Cap or an Interest Rate Collar, the Borrower shall pay to the Bank a premium on the amount of the Withdrawn Loan Balance to which the Conversion applies, calculated: (i) on the basis of the premium, if any, payable by the Bank for an interest rate cap or collar purchased by the Bank from a Counterparty for the purpose of establishing the Interest Rate Cap or Interest Rate Collar; or (ii) otherwise as specified in the Conversion Guidelines.

More Definitions of Interest Rate Collar

Interest Rate Collar means, in respect of an IBRD Hedge, placing a ceiling and a floor on a floating rate of interest. 2

Interest Rate Collar means an OTC foreign currency interest derivative contract where a market participant simultaneously purchases an interest rate cap and sells an interest rate floor on the same interest rate for the same maturity and notional principal amount.

Interest Rate Collar means with respect to all or any amount of the Withdrawn Loan Balance, an “Interest Rate Collar” as defined in the relevant General Conditions or described in the relevant Loan Agreement.

Interest Rate Collar means in respect of the Floating Rate, a combination of a ceiling and a floor that sets an upper and a lower limit for said Floating Rate;

Interest Rate Collar means in respect of the Variable Rate, a combination of a ceiling and a floor that sets an upper and a lower limit for said Variable Rate.

Interest Rate Collar. “Interest Rate Conversion”; “Principal Payment Date”; “Reference Rate Reset Date”; “Variable Spread”; the term “the Loan” is modified to read “the Non- Concessional Portion of the Loan”; the term “Unwithdrawn Loan Balance” is modified to read “the Unwithdrawn Balance of the Non-Concessional Portion of the Loan”; and the term “Withdrawn Loan Balance” is modified to read “Withdrawn Balance of the Non- Concessional Portion of the Loan”.

Interest Rate Collar means the establishment of an upper and a lower limit on either the Variable Rate or the Reference Rate applicable to all or any portion of the Loan as requested by the Borrower pursuant to paragraph 2.2.1 below.