Common use of Financing component Clause in Contracts

Financing component. The financing component reflects the expenses and earnings that would arise from acquiring the Reference Instrument (or its constituents), selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee which reduces the value of the index). If the acquisition costs and the Index Fee exceed the interest income based on the relevant Interest Rate on a particular day, the value of the Factor Index is reduced on such day. The definitions below shall apply for the purposes of this index description. "Adjustment Date" means the first Index Calculation Day of each calendar month.

Financing component. The financing component reflects the expenses and earnings that would arise from acquiring the Reference Instrument (or its constituents), selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee which reduces the value of the index). If the acquisition costs and the Index Fee exceed the interest income based on the relevant Interest Rate on a particular day, the value of the Factor Index is reduced on such day. .] The definitions below shall apply for the purposes of this index description. "“Adjustment Date" ” means the first Index Calculation Day of each calendar month.