Abr Credit Agreement
The scope is limited only by the imagination and support of the parties. Alternate Base Rate is a term defined in many credit agreements, especially in U.S. practice. The definition varies between credit agreements, but there are many common characteristics. It defines how to determine, in certain circumstances, the reference rate at which a margin is added to indicate the interest rate to be paid on an advance. Typically, the definition defines several choices of the rate. Lenders can try to make the highest interest rate alternative bases. Each Swingline loan shall be made in accordance with the procedures described in point 2.05. (b) Subject to section 2.14, any revolving loan shall consist entirely of ABR loans or loans in euros, as the borrower may request under this Agreement; provided that any ABR loan is made only in dollars. Any Swingline loan is an ABR loan or bears interest, as provided in section 2.13(c) of this section. If the borrower does not provide credit notice on the continuation of LIBOR loans, LIBOR loans are considered determined to convert that term into an ABR loan. No ABR loan can state a request for tenders or a call for tenders.