Base Rate definition: Copy, customize, and use instantly
Introduction
The term "Base Rate" refers to the standard interest rate used as a benchmark for determining the interest charges on loans or credit. It is essential for defining the underlying rate of interest to which a premium or discount may be added, depending on the terms of the agreement.
Below are various examples of how "Base Rate" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Base Rate" as a fixed reference rate
This definition ties "Base Rate" to a fixed rate established by a financial institution or regulatory body.
"Base Rate" means the interest rate set by [the relevant bank/regulatory body], which serves as the reference rate for determining interest charges on loans or credit agreements.
Definition of "Base Rate" as the prime rate
This definition connects "Base Rate" to the prime rate, which is the interest rate typically offered to the most creditworthy borrowers.
"Base Rate" refers to the prime rate, which is the interest rate charged by banks to their most creditworthy customers and is used as a reference rate for other loans.
Definition of "Base Rate" as the LIBOR rate
This definition links "Base Rate" to the London Interbank Offered Rate (LIBOR), used in global financial transactions.
"Base Rate" means the LIBOR (London Interbank Offered Rate), as published by the British Bankers’ Association, used as a benchmark for determining interest rates on loans or credit facilities.
Definition of "Base Rate" as a central bank rate
This definition applies "Base Rate" to the rate set by a country's central bank to guide monetary policy.
"Base Rate" refers to the rate of interest set by [the central bank], which influences the cost of borrowing for commercial banks and serves as a benchmark for other interest rates.
Definition of "Base Rate" as an adjustable rate
This definition ties "Base Rate" to a rate that can change over time based on market conditions.
"Base Rate" refers to an adjustable interest rate that fluctuates periodically based on a specified benchmark, such as the central bank’s rate or LIBOR.
Definition of "Base Rate" as a contractually defined rate
This definition connects "Base Rate" to a rate specifically defined within a contractual agreement.
"Base Rate" means the interest rate defined in this Agreement as the base reference for calculating the applicable interest rate on the loan or credit facility.
Definition of "Base Rate" as the discount rate
This definition links "Base Rate" to a rate used by the central bank for discounting loans to commercial banks.
"Base Rate" refers to the discount rate set by the central bank, which is used to determine the minimum rate at which commercial banks can borrow funds.
Definition of "Base Rate" as the average market rate
This definition applies "Base Rate" to an average rate of interest in the market.
"Base Rate" means the average interest rate in the market for similar types of loans, calculated as an industry benchmark for loan agreements.
Definition of "Base Rate" as a rate applicable to certain currencies
This definition ties "Base Rate" to a specific rate used for certain currencies or financial products.
"Base Rate" refers to the interest rate applied to loans or transactions in a particular currency, as determined by market conditions or relevant financial authorities.
Definition of "Base Rate" as a corporate rate
This definition connects "Base Rate" to an internal rate used by a corporation for financing decisions.
"Base Rate" means the internal rate of interest determined by the company, used as a benchmark for pricing loans or financing arrangements for its subsidiaries or affiliates.
Definition of "Base Rate" as a regulatory benchmark
This definition ties "Base Rate" to a rate established by regulatory guidelines.
"Base Rate" means the benchmark interest rate established by the relevant financial regulator for specific types of financial instruments.
Definition of "Base Rate" as a rate based on economic indicators
This definition connects "Base Rate" to economic indicators such as inflation or GDP growth.
"Base Rate" refers to the interest rate derived from prevailing economic indicators, including inflation rates and gross domestic product growth.
Definition of "Base Rate" as the floor rate
This definition links "Base Rate" to the minimum allowable rate in a loan agreement.
"Base Rate" means the minimum interest rate stipulated in the agreement, below which the applicable rate cannot fall.
Definition of "Base Rate" as a floating reference
This definition applies "Base Rate" to a reference rate that varies over time.
"Base Rate" refers to a floating rate determined periodically based on the average rate of interbank lending in the relevant market.
Definition of "Base Rate" as a policy rate
This definition ties "Base Rate" to the interest rate directly linked to government monetary policy.
"Base Rate" means the interest rate set by the government or central monetary authority to guide overall economic policy.
Definition of "Base Rate" as a commercial bank rate
This definition connects "Base Rate" to the standard interest rate charged by commercial banks.
"Base Rate" refers to the interest rate set by a commercial bank as the basis for determining lending and borrowing rates.
Definition of "Base Rate" as the rate on treasury securities
This definition links "Base Rate" to the yield on government treasury securities.
"Base Rate" means the yield on government treasury bonds or securities of comparable maturity, serving as a benchmark for determining interest rates.
Definition of "Base Rate" as a rate determined by credit rating
This definition applies "Base Rate" to the interest rate based on the borrower's credit rating.
"Base Rate" refers to the interest rate determined by the creditworthiness of the borrower, as assessed by a recognized credit rating agency.
Definition of "Base Rate" as a capped rate
This definition ties "Base Rate" to a maximum rate limit set within an agreement.
"Base Rate" means the capped interest rate specified in this Agreement, ensuring it does not exceed a predetermined threshold.
Definition of "Base Rate" as an interbank rate
This definition connects "Base Rate" to the rate at which banks lend to one another.
"Base Rate" refers to the interbank lending rate, which serves as a basis for calculating interest on other financial products.
Definition of "Base Rate" as a competitive market rate
This definition links "Base Rate" to a rate determined by competitive market conditions.
"Base Rate" means the interest rate influenced by competitive market dynamics, reflecting supply and demand for credit.
Definition of "Base Rate" as a blended rate
This definition applies "Base Rate" to a weighted average of multiple benchmark rates.
"Base Rate" refers to a blended interest rate derived from a combination of benchmarks, such as LIBOR and central bank rates.
Definition of "Base Rate" as a variable loan rate
This definition ties "Base Rate" to a rate that adjusts based on specific loan terms.
"Base Rate" means the adjustable interest rate applied to a loan, which varies based on conditions outlined in the loan agreement.
Definition of "Base Rate" as a deposit-linked rate
This definition connects "Base Rate" to rates linked to deposit accounts.
"Base Rate" refers to the interest rate calculated in relation to deposit rates offered by banks.
Definition of "Base Rate" as a risk-adjusted rate
This definition links "Base Rate" to the interest rate adjusted for borrower risk.
"Base Rate" means the rate adjusted to account for the risk profile of the borrower, as determined by the lender.
Definition of "Base Rate" as a reference in derivatives
This definition applies "Base Rate" to a benchmark used in derivatives contracts.
"Base Rate" refers to the benchmark rate referenced in derivative transactions, such as interest rate swaps.
Definition of "Base Rate" as a syndicated loan rate
This definition ties "Base Rate" to rates applicable to syndicated loans.
"Base Rate" means the interest rate agreed upon by lenders in a syndicated loan arrangement.
Definition of "Base Rate" as a regional benchmark
This definition connects "Base Rate" to region-specific reference rates.
"Base Rate" refers to the benchmark rate used in a specific region, such as EURIBOR in the Eurozone.
Definition of "Base Rate" as a contractually agreed minimum
This definition links "Base Rate" to a minimum rate guaranteed in a contract.
"Base Rate" means the minimum interest rate contractually guaranteed to apply under the terms of this Agreement.
Definition of "Base Rate" as an established institutional rate
This definition applies "Base Rate" to a rate set by established institutions or industries.
"Base Rate" refers to the rate determined by established financial institutions as a standard for loans and other credit products.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.